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HomeMy WebLinkAbout2025-03-19 Finance Committee Minutesoho- orxr� � o Town of Reading ,I Meeting Minutes p Board - Committee - Commission - Council: Finance Committee Date: 2025-03-19 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 Corem, Encirl Kume, Joe McDonagh, Ed Ross, Emily Sisson, John Sullivan, Mark Zarrow (remote until 8:56 pm) Members - Not Present: Others Present: Town Manager Matt Kraunelis, CFO Sharon Angstrom (remote), Assistant Town Manager Jayne Wellman, Facilities Director Joe Huggins (remote), Assistant Facilities Director Kevin Cabuzzi (remote), Community Services Director Jenna Wood (remote), CTO Kevin Furilla (remote), Michael Coltman, Joe McHugh, Mary Ann Devlin, Judy Coltman, Eileen Manning, Christopher R Cook, Chris Haley (remote), Angela Binda (remote), Melissa Murphy (remote) 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 Joe Carnahan called the meeting to order at 7:01 pm. Roll Call Attendance: Mark Zarrow (remote), Emily Sisson, Joe McDonagh, Ed Ross, Endri Kume, John Sullivan, Joe Carnahan, Geoffrey Coram. Public Comment Michael Coltman of 18 Milton Road, as well as Precinct 4 Town Meeting Member and president of the Reading Pickleball Players Association (RPPA), stated that RPPA Is as surprised as everyone else on the quoted cost for pickleball courts at Symonds Way. He expressed his appreciation to Town staff and Boards and Committees on their work to bring this to Town Meeting, emphasized the need for pickleball courts in town, and noted that the RPPA would continue to fundreise, find ways to reduce the cost, and have less of an impact on the town. Discuss and Vote on financial articles for 2025 Annual Town Meetinq Town Manager Matt Kraunelis and CFO Sharon Angstrom reviewed the financial Annual Town Meeting Warrant Articles with the Finance Committee. Article 4 — Amendments to the Capital Plan Page I 1 CFO Sharon Angstrom reviewed the changes to the Capital Plan, and noted changes to several projects including traffic signal improvements and IT upgrades in FY25, and the addition of a facilities master plan study in FY27. Geoffrey Coram noted that the correct net change to the FY27 amendments in the Warrant Report should be-$23,000. Article 5 - Amendments to FY25 Operating Budget Ms. Angstrom reviewed the proposed amendments to the FY25 operating budget. Members of the committee asked questions about specific line items and discussed the rationale behind various changes to the capital plan and budget. Article 6 - Prior Years Bills There are no prior years' bills, and this article is expected to be tabled. Article 7 - Other Post Employment Benefits (OPEB) Ms. Angstrom reviewed the proposed funding for Other Post Employment Benefits. OPEB is funded at $320,500 for FY26, with $200,000 from the General Fund, $85,000 from the Water Enterprise Fund, $25,000 from the Sewer Enterprise Fund, and $10,000 from the Storm Water Enterprise Fund. Article 8 - Revolving Funds Ms. Angstrom reviewed the amendments to the Inspection Revolving fund, the balances of the revolving funds, and the addition of an Elder & Human Services Revolving Fund, which will primarily be used to pay vendors for programming. Article 9 - HERO Act (M.G.L. c. 59, § 5, clause 22I) Article 30 - HERO Act (M.G.L. c. 59, § 5, clause 22JI) Town Manager Matt Kraunells explained Articles 9 and 10 pertaining to property tax exemptions for veterans. Ms. Angstrom explained that the veteran tax exemptions will be covered by existing abatement allowances. Article 11 - FY26 Budget Will be discussed later in the meeting. Article 13 - High Street/Haven Street Infrastructure Project Ms. Angstrom explained that the Town has secured a $2.6 million MassWorks grant for the High Street and Haven Street project, and identified other funding sources to cover the remaining costs without borrowing. The project Involves Improvements to High Street and part of Haven Street, completing long-term utility upgrades in the downtown area, and is scaled down from a previous scope. She clarified that most of the funds being used for this project, such as funds borrowed for other similar projects, will be nearly depleted, and that they have been carefully selected to meet legal requirements for reallocation. Some Committee members expressed Interest In seeing more detailed plans and maps of the proposed Improvements at Town Meeting. Article 14 - Pickelbafl Assistant Town Manager Jayne Wellman explained that the current estimated cost to construct pickleball courts on Symonds Way is $1.792 million, but they plan to ask town meeting for $1.5 million In borrowing. The total project budget includes $200,000 raised by RPPA, $100,000 from recreation capital, and $200,000 from the Burbank fund. She expressed confidence that the Town could bid the project for $1.5 million, and noted several ways the Town could potentially scale down the scope to decrease costs. Committee members requested a breakdown of the costs to be presented at Town Meeting. Article 15 - Lead Mitigation Mr. Kraunelis reviewed the Article for Phase 2 of the lead mitigation program. The request Is for borrowing $1.5 million through a no -interest loan through the MWRA plus grants. Ms. Angstrom also noted that she would confirm that there is a 25% grant component for communities who fully fund the removal of lead, as in the past funding for such projects were funded by 75% grant and 25% borrowing. Page 12 Following review and discussion, the Finance Committee voted on the relevant warrant articles and assigned members to report on each article to Town Meeting. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend Article 4 to Town Meeting as amended. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Enciri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Ed Ross On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend Article 5 to Town Meeting as amended, as Geoffrey Coram noted the correct Increase Subtotal was $998,000. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Geoffrey Coram On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend Article 7 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Joe McDonagh On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 8 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Endri Kume On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 9 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: John Sullivan On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 10 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: John Sullivan Finance Committee Report to Town Meeting for Article 11 (to be voted on later in the meeting): Joe Carnahan On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 13 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Marianne McLaughlin -Downing Page 1 3 On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 14 to Town Meeting as presented, with Marianne McLaughlin -Downing expressing her reluctance given the cost. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Emily Sisson On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 9-0-0 to recommend the contents of Article 15 to Town Meeting as presented. Roll Call Vote: Mark Zarrow - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin -Downing - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Endri Kume - Yes, John Sullivan - Yes, Joe Carnahan - Yes. Finance Committee Report to Town Meeting: Mark Zarrow Mark Zarrow left the meeting at 8:56 pm. As all remaining members were present in - person, all other votes were taken by show of hands. Discuss and Vote on FY26 Budget On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line B99 Benefits in the amount of $24,790,102 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line C99 Capital in the amount of $3,398,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line D99 in the amount of $3,051,975 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line E99 Education - Vocational in the amount of $1,317,435 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line F99 Finance Committee Reserves in the amount of $200,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line G91 Administrative Services Wages in the amount of $1,266,300 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line G92 Administrative Services Expenses in the amount of $1,685,468 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line G91a Technology Wages in the amount of $539, 100 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line G92a Technology Expenses in the amount of $759,300 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line H91 Public Services Wages in the amount of $1,532,034 to Town Meeting. P,,1a On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line H92 Public Services Expenses in the amount of $313,928 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line I91 Finance Wages in the amount of $1,123,600 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line I92 Finance Expenses in the amount of $151,600 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line 191 Public Safety Wages in the amount of $14,277,839 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line 392 Public Safety Expenses in the amount of $792,208 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted B-O-O to recommend budget line K91 Public Works Wages in the amount of $3,375,650 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line K92 Public Works Expenses in the amount of $1,048,135 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line K93 Public Works Snow & Ice in the amount of $675,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line K94 Public Works Street Lights in the amount of $135,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line K95 Public Works Rubbish in the amount of $2,200,041 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line L91 Library Wages in the amount of $1,810,050 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line L92 Library Expenses in the amount of $450,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line M91 Core Facilities in the amount of $4,072,432 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line M92 Town Buildings in the amount of $389,936 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line U99 School Department in the amount of $58,491,591 to Town Meeting. P', I On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line W99 Water Enterprise Fund in the amount of $8,683,575 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line X99 Sewer Enterprise Fund in the amount of $8,734,796 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line Y99 Storm Water Enterprise Fund in the amount of $581,625 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line Z99 PEG Access Enterprise Fund In the amount of $519,000 to Town Meeting. On a motion by Emily Sisson, seconded by Joe McDonagh, the Finance Committee voted 8-0-0 to recommend budget line ZZ9 Landfill Enterprise Fund in the amount of $37,000 to Town Meeting. Liaison Reports Marianne McLaughlin -Downing stated that the Select Board discussed the Master Plan and forming a committee, and authorized an appraisal of the Pleasant Street Center. She also noted that CPDC received a letter indicating that the first step of META Communities zoning changes were approved by the state. John Sullivan shared that the Eastern Gateway survey is out now. Discuss Finance Committee Report to Town Meeting The Finance Committee discussed the budget summary report to Town Meeting drafted by Chair Joe Carnahan. The report outlined the Town's current financial position and budget for the coming year. It also conveyed that while the Town can fund a level service budget this year using free cash, there are concerns about future years. The committee briefly addressed some minor punctuation and wording changes in the letter and agreed that it was ready to be presented to Town Meeting. CFO Sharon Angstrom asked whether the Committee needed to vote on the increased use of Free Cash from $5.8 million, which was their vote to recommend in the fall, to $6 million, where an extra $200,000 was used to balance the extra money needed for health insurance, or whether they wanted her to make adjustments to other proposed revenue line items such as interest earnings, to attain the balance. Members discussed and agreed that their support of the additional use of Free Cash was inherent in their votes to recommend Article 5, the amended FY25 Budget, and their votes to recommend the FY26 proposed budget. Future Agendas The next meeting is scheduled for Wednesday, April 2n0 at the High School Library to vote on the May 1" Special Town Meeting Warrant Articles. The following regularly scheduled meeting will be in June, unless another meeting is needed before then. Approve Prior Meeting Minutes On a motion by Ed Ross, seconded by Emily Sisson, the Finance Committee voted 7-0-1 to approve the meeting minutes of March 12, 2025 as presented, with Geoffrey Coram abstaining, as he was not present at that meeting. On a motion by Ed Ross, seconded by Marianne McLaughlin -Downing, the Finance Committee voted 8-0-0 to adjourn at 9:43 pm. Page 1 6