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Home My WebLink About2025-10-15 Finance Committee Minutes�N r � c Town of Reading TOWN CLERK Meeting Minutes READINGf, MA 1015 ROV -6 9 a�'"""` AM 7:39 Board - committee - Commission - Council: Finance Committee Date: 2025-10-15 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 Emily Sisson (remote), Geoffrey Coram, Endn Kume, Joe McDonagh, Ed Ross (remote), John Sullivan, Mark Zarrow Members - Not Present: Marianne McLaughlin -Downing Others Present: Town Manager Matt Kraunelis, CFO Sharon Angstrom (remote), DPW Director Chris Cole, Fire Chief Rick Nelson, Facilities Director Joe Huggins (remote), Assistant Town Manager Jayne Wellman (remote), Assistant Fire Chief John Keough (remote), C O Kevin Furilla (remote), Chris Haley (remote 7:41 pm) 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. Call to Order and Welcome Chair Joe Carnahan called the meeting to order at 7:01 pm. Roll call attendance: Emily Sisson (remote), Geoffrey Coram, Joe McDonagh, Endri Kume, John Sullivan, Mark Zarrow, Joe Carnahan. Ed Ross joined the meeting remotely shortly after roll call at 7:03 pm. Not present: Marianne McLaughlin -Downing. Public Comment There was no comment from the public. Liaison Reports Ed Ross shared that the Killam School Building Committee met last night. The main topic of discussion was considering ways to do early packaging for site work to help with costs and scheduling. The project continues to be right on budget and right on schedule. Discussion on Financial Policies and Impacts on Bond Rating CFO Sharon Angstrom stated that she spoke with the bonding agent Yegarding the impact of bond rating on borrowing. If the Town's bond rating should fall to AA from AAA, borrowing $85 million for the building projects would result in about $1.3 millio more in Interest over the life of the loan (based on current rates). She shared information on how bonding agencies prefer to see a minimum of 15% in reserves and expressed concern that the bond rating could be affected given the significant use of free cash over the past couple of years. Page 1 1 Reading's policies do not specify a 15% reserve, but the Town was able to achieve AAA rating with those policies. She opined that FY27 would be the last year she would be comfortable maintaining a 15% reserve before needing an override. Town Manager Matt Kraunelis noted that the Select Board received the Finance Committee's request for a free financial policy review from the Department of Revenue Division of Local Services Financial Management Resources Bureau. The Select Board will review and vote on the request at their next meeting on October 218t. Mr. Carnahan noted that a Select Board member reached out directly to the Bureau, and a representative offered to have a 15- minute phone call with her and Mr. Carnahan at some point. Discuss and Vote on Use of Free Cash to Support the FY27 Budget The Finance Committee discussed the FY27 budget and free cash usage. Several members expressed initial concerns about the high proposed free cash usage amount, but the difference between free cash to support a 2.75% Increase and 3% increase is only $200,000. Mr. Kraunelis explained that the town and school departments had worked together to reach a compromise, which will allow the schools to avoid service cuts while maintaining enough in free cash reserves. The Committee came to the consensus on a 3% increase, though Joe McDonagh had reservations about how taxpayers might perceive the Town not lowering costs sooner. On a motion by Endri Kume, seconded by Mark Zarrow, the Finance Committee voted 7-1-0 to recommend a full 3% increase to the Fiscal Year 26 operating budget and using $6.75 million of free cash to support the budget as presented. Roil call vote: Ed Ross — Yes, Emily Sisson — Yes, Geoffrey Coram — Yes, Joe McDonagh — No, Endri Kume — Yes, John Sullivan — Yes, Mark Zarrow — Yes, Joe Carnahan — Yes. Capital Plan and Debt Review Ms. Angstrom reviewed proposed changes to the Capital Plan and Debt Schedule. She detailed various capital projects, including lighting upgrades, a fire truck, and equipment replacements, and noted that Inflation has significantly Increased costs and forced the Town to stretch the useful life of assets. She also mentioned that some projects were moved to future fiscal years to align with available funding and prioritize more urgent needs. Discuss an on Financial Articles in the n Town Manager Matt Kraunelis reviewed the articles for the Subsequent Town Meeting warrant. Article 1: Reports. Article 2: Instructional Motions Article 3: Amendments to the Capital Improvement Plan. CFO Sharon Angstrom reviewed the proposed changes during her earlier Capital and Debt Review. On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 8-0-0 to recommend the substance of Article 3 to Town Meeting as presented. Roll call vote: Ed Ross — Yes, Emily Sisson — Yes, Geoffrey Coram — Yes, Joe McDonagh — Yes, Endri Kume — Yes, John Sullivan — Yes, Mark Zarrow — Yes, Joe Carnahan — Yes. Report to Town Meeting assigned to Geoffrey Coram. Article 4: Amendments to the FY25 Operating Budget. Ms. Angstrom explained some changes proposed including additional funds for health Insurance, vocational school, reimbursement of FINCOM reserves, and rodent control for the Health department. On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 8-0-0 to recommend the substance of Article 4 to Town Meeting as presented. Page 1 2 Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Report to Town Meeting assigned to Endri Kume. Article 5: Reallocate Borrowed Project Funds. This article seeks to reallocate borrowed funds leftover from closed out projects to the Killam School and Reading Center for Active Living (ReCAL) projects. Ms. Angstrom noted that she tried to divide the funds as evenly as possible between the two projects. The Finance Committee discussed and came to the consensus that they would prefer that all the funds be reallocated to the Killam project due to its higher cost and longer borrowing term to save more in Interest payments. On a motion by Ed Ross, seconded by Geoffrey Coram, the Finance Committee voted 8-0-0 to recommend the substance of Article 5 to Town Meeting, with the recommendation to amend the article to reallocate all presented funds to the Killam School Building Project. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Report to Town Meeting assigned to Mark Zarrow. Article 6: Prior Years Bills. Mr. Kraunelis reviewed the two bills that were received late: one from the City of Woburn for $3,245, and one for Next Step Volunteers for their work on Mattera Cabin for $246. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the substance of Article 6 to Town Meeting as presented. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Report to Town Meeting assigned to John Sullivan. Article 7: Municipal Veterans Assistance Fund. This article seeks to adopt the Massachusetts General taw allowing municipalities to add a mechanism on tax bills to enable residents to donate to a Municipal Veterans Assistance Fund. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the substance of Article 7 to Town Meeting as presented. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Report to Town Meeting assigned to Joe Carnahan. Article 8: Town Charter Amendments (for approval by voters). No Finance Committee report. Article 9: Town Charter Amendments (for approval by the state legislature). No Finance Committee report. Article 10: Town Forest Invasive Species. This article seeks $50,000 for Invasive species management in the Town Forest. Joe Carnahan noted that he attended a Town Forest Committee meeting where they explained that they had a quote for a planned area, and they are concerned about how to get this budgeted in the future. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the substance of Article 10 to Town Meeting as presented. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. Report to Town Meeting assigned to Joe McDonagh. Article 11: Snow Removal Bylaw. No Finance Committee report Page 1 3 Future Agendas The Committee is scheduled to meet again on November 5'h, when they will vote on Special Town Meeting warrant articles and discuss the override process. Review and Approve Prior Meeting Minutes On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 7-0-1 to approve the meeting minutes of October 8, 2025, as presented, with Endri Kume abstaining, as he was not present at that meeting. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Abstain, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. On a motion by Ed Ross, seconded by Emily Sisson, the Finance Committee voted 8-0-0 to adjourn at 9:14 pm. Roll call vote: Ed Ross - Yes, Emily Sisson - Yes, Geoffrey Coram - Yes, Joe McDonagh - Yes, Endri Kume - Yes, John Sullivan - Yes, Mark Zarrow - Yes, Joe Carnahan - Yes. 1,"I a