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Home My WebLink About2025-06-25 Finance Committee Minutes Town of Reading Meeting Minutes Page | 1 2016-09-22 LAG Board - Committee - Commission - Council: Finance Committee Date: 2025-06-25 Time: 7:00 PM Building: Reading Town Hall Location: Berger Room Address: 16 Lowell Street Session: Open Session Purpose: General Business Version: Final Attendees: Members - Present: Chair Joe Carnahan, Vice Chair Marianne McLaughlin-Downing, Endri Kume, Joe McDonagh (remote 7:58 pm) Ed Ross (remote), Emily Sisson (remote), John Sullivan (remote), Mark Zarrow Members - Not Present: Geoffrey Coram Others Present: Town Manager Matt Kraunelis, CFO/Town Accountant Sharon Angstrom (remote), Police Chief David Clark, Fire Chief Rick Nelson, CTO Kevin Furilla, DPW Director Chris Cole, Karen Gately Herrick Minutes Respectfully Submitted By: Jacquelyn LaVerde Topics of Discussion: This meeting was held in-person in the Berger Conference 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. Roll call attendance: John Sullivan (remote), Ed Ross (remote), Emily Sisson (remote), Endri Kume, Mark Zarrow, Marianne McLaughlin-Downing, Joe Carnahan. Public Comment There was no comment from the public. Liaison Reports Ed Ross reported on the Killam School Building Committee's progress, including schematic design and estimated timeline for student occupancy. Emily Sisson shared that the Recreation Committee's Birch Meadow Phase 2 project is proceeding smoothly, with no additional costs incurred so far. The Recreation Division has expanded summer programming. The Recreation Committee just greenlit an expansion of the Sturgis walkway through the woods. Marianne McLaughlin-Downing provided an update on CPDC's approval of the MBTA community submission, which could have had financial implications if it was not approved . Joe Carnahan shared that the Audit Committee meeting for RMLD was rescheduled due to staff changes and additional questions by the auditors. The CPA Study Committee heard presentations from all four pillar groups. Next steps are reporting to Town Meeting in the Page | 2 fall, getting CPA on the warrant for April Town Meeting, then on the ballot in the November 2026 election. The Study Committee is leaning toward recommending a 1% surcharge. Select Board member Karen Gately Herrick shared that the Burbank Ice Arena is expected to give a report to the Select Board at the next meeting. She also shared news from the Massachusetts Municipal Association (MMA) Fiscal Policy Committee meeting including an anticipated 2.2% increase in unrestricted government aid. Town Manager Matt Kraunelis shared that the Select Board recently voted to not increase water or stormwater rates, and to decrease sewer rates. Finance Committee Reserve Fund Transfer Request Chief Financial Officer/Town Accountant Sharon Angstrom presented a transfer request totaling $120,000 for various expenses, including a new leaf sweeper ($31,000), snow and ice costs ($20,000), Police arbitration ($31,000), Technology capital ($13,000), ambulance billing ($10,000), and health insurance premiums ($15,000). Police Chief David Clark explained the complex case involving a disagreement between the Patrol Officers and Supervisors unions over how to fill details and overtime, which led to arbitration. Though neither union was seeking damages, the arbiter awarded damages to the Patrol Officers Union. As it was binding arbitration, Town Counsel advised paying the damages. Fire Chief Rick Nelson explained the impacts of an explosion on power to the Fire Station and fiber optic lines that support the radio and communication systems , and subsequent repairs that were needed. Sharon Angstrom explained that ambulance billing expenses by a third party are trending high due to varied services month-to-month. On a motion by Marianne McLaughlin-Downing, seconded by Mark Zarrow, the Finance Committee voted 7-0-0 to approve the Finance Committee Reserve Fund transfer request as presented. Roll call vote: Emily Sisson – Yes, John Sullivan – Yes, Ed Ross – Yes, Endri Kume – Yes, Mark Zarrow – Yes, Marianne McLaughlin-Downing – Yes, Joe Carnahan – Yes. Improving Communication between the Finance Committee and the Select Board The committee discussed communication challenges with the Select Board and School Committee, particularly regarding budget oversight and capital project tracking. The Committee requested quarterly financial updates to better track capital project progress and spending. Sharon Angstrom explained that recent years' tight budgets required keeping departmental expenses flat, leading to increased reliance on free cash and income reserves for unexpected expenses. She also provided an overview on short-term, long-term and internal borrowing for upcoming projects including the High School field house floor replacement, Birch Meadow Phase 2, Killam School, Reading Center for Active Living, and pickleball, and efforts to line them all up on one long-term borrowing. Joe McDonagh joined the meeting remotely at 8:07 pm. Following a lengthy discussion on borrowing and building projects, Ms. Angstrom offered to prepare an update on remaining funds available from projects that have been completed. The Finance Committee and Karen Gately Herrick of the Select Board agreed to keep each other apprised of budgeting discussions that are on their respective agendas. Discussion of Finance Committee policies and how to review them Joe Carnahan shared information from an MMA seminar he attended on developing financial policy. The presenters outlined various policies for planning and operations. The Committee could create an informal process of reviewing their own policies or ask the Select Board to ask the Division of Local Services (DLS) Financial Management Bureau for help reviewing Page | 3 policies. Sharon Angstrom offered to ask DLS to review the policies and make recommendations. She also noted that every time the Town borrows money, the policies are given to S&P so they can issue a new bond rating, and S&P has not had any negative comments, just a recommendation to strengthen their debt policy with more specific borrowing parameters. Following discussion, the Committee agreed to ask the Select Board for support to engage DLS in the policy review process. Future Agendas The next meeting is scheduled for August 13th, and the first fall Financial Forum is scheduled for September 17th. Future agenda items will include an update on funds available left over from previous building projects, a discussion on the Select Board’s response to FINCOM’s outreach, a discussion of policy review, and reorganization. Approve Prior Meeting Minutes On a motion by Endri Kume, seconded by Marianne McLaughlin-Downing, the Finance Committee voted 8-0-0 to approve the meeting minutes of March 19, 2025 as presented. Roll call vote: Emily Sisson – Yes, Ed Ross – Yes, John Sullivan – Yes, Joe McDonagh – Yes, Endri Kume – Yes, Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes. On a motion by Emily Sisson, seconded by Mark Zarrow, the Finance Committee vote 6-0-2, to approve the meeting minutes of April 2, 2025 as presented, with John Sullivan and Endri Kume abstaining, as they were not present at that meeting. Roll call vote: Ed Ross – Yes, John Sullivan – Abstain, Joe McDonagh – Yes, Emily Sisson – Yes, Endri Kume – Abstain, Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes. On a motion by Emily Sisson, seconded by Mark Zarrow, the Finance Committee voted 8-0-0 to adjourn at 9:04 pm. Roll call vote: Ed Ross – Yes, John Sulivan – Yes, Joe McDonagh – Yes, Emily Sisson – Yes, Endri Kume – Yes. Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes.