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HomeMy WebLinkAbout2026-03-04 Finance Committee MinutesTown of Reading a�= Meeting Minutes Board - Committee - Commission - Council: Finance Committee Date: 2026-03-04 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, Geoffrey Coram, Endri Kume, Joe McDonagh, Marianne McLaughlin -Downing, Ed Ross (remote) Members - Not Present: Emily Sisson, John Sullivan, Mark Zarrow Others Present: Acting Town Manager Jayne Wellman, CFO Sharon Angstrom, Police Chief David Clark, Deputy Police Chief Christine Amendola, CTO Kevin Furllla, Technology Manager Jenn Iosua, Health Director Ade Solann, Fire Chief Rick Nelson, DPW Director Chris Cole, Library Director Amy Lannon, Facilities Director Joe Huggins, Assistant Facilities Director Kevin Cabuzzi (remote), Community Development Director Andrew MacNichol, Human Resources Director Sean Donahue, Conservation Administrator Chuck Tirone; Select Board Members: Karen Gately Herrick, Chris Haley (remote), Melissa Murphy (remote), Karen Rase -Gillis (remote); Rosemarie DeBenedetto, Rick Keogh, Brian Bowe, Angela Blnda, Steven Frederickson (remote), Joseph Fleury (remote), Karen Janowski (remote) 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 & Welcome Chair Joe Carnahan called the meeting to order at 7:01 pm. Roll Call: Ed Ross (remote), Geoffrey Coram, Endri Kume, Joe McDonagh, Marianne McLaughlin -Downing, Joe Carnahan. As there was a quorum present, the Select Board called to order at 7:02 pm. Roll Call: Karen Rose -Gillis (remote), Melissa Murphy (remote), Karen Gately Herrick (in - person, then re -Joined remotely at 8:07 pm), Chair Haley (remote). Public Comment Rosemarie DeBenedetto of Haystack Road, and frequent user of the Pleasant Street Senior Center advocated for more program funding in order to retain Instructors at the senior center. Page 1 1 Karen Gately Herrick of the Select Board stated that she is also the liaison for the Council on Aging and noted that the Elder and Human Services division is having budget issues through the end of this year. Ed Ross stated that he regretted going off -topic in his liaison report last week expressing his displeasure and shock with the Select Board's negotiations with the Town Manager. His greatest concern is the welfare of the town and feels strongly that transparency is needed from the Select Board. Rick Keogh of Pearl Street, and member of the Conservation Commission, stated that the Conservation Commission operates around $40,000 per year, but mostly relies on fragmented, non -recurring funding. He advocated for a $20,000 recurring base for conservation and trails, which Includes $5,000 for conservation operations, $5,000 for trails priorities, and $10,000 for planned capital improvements and deferred maintenance. Brian Bowe of Brewer Lane, and Chair of the Conservation Commission echoed Mr. Keogh's points and reiterated the work involved with the management of Invasive plant species. It is difficult to plan and execute without knowing how to fund It. Angela Binda of Orchard Park Drive advocated for properly funding programming for seniors at the senior center once ARPA funds have been fully spent. Chuck Tirone, Conservation Administrator, explained that the Conservation Commission is looking to permanently combine budget line items Including the existing $2,000 Conservation line in the Public Services budget, $6,500 for the Conservation Commission from the Select Board board/committee budget, and $5,000 for the Trails Committee. Chris Haley of Tennyson Road noted that the Finance Committee, Select Board, and Town staff have come up with a way to balance the budget and that other boards and committees vie for a potion of the $20,000. Permanently allocating funds from the Select Board Board/Committee fund reduces what is available for other boards and committees. Liaison Reports Ed Ross shared that the School Committee nominated Carla Nazzaro as their liaison to the Killam School Building Committee (KSBC) going forward. Ms. Nazzaro's term on the School Committee is up this April and she Is not seeking re-election, but she will continue on the KSBC for her leadership and continuity. Joe Carnahan shared that the Community Preservation Act (CPA) Study Committee met to reflect on their presentation to the Select Board, and prepare their presentation to Town Meeting. Geoffrey Coram noted that the School Committee has a lot of meetings scheduled, mostly Executive Sessions, next week to start discussing and interviewing candidates for the Superintendent of Schools. PUBLIC HEARING: Town Manager Recommended Budget for FY27 Marianne McLaughlin -Downing read the Public Hearing notice and moved to open the Public Hearing. The motion was seconded by Endri Kume and approved by a vote of 6-0-0. Roll call vote: Ed Ross - Yes, Geoffrey Coram - Yes, Endri Kume - Yes, Joe MCDonagh - Yes, Marianne McLaughlin -Downing - Yes, Joe Carnahan - Yes. Recommended Revenues Chief Financial Officer Sharon Angstrom reviewed the discussion from the Financial Forum back in the fall. There was a 3% operating budget increase, with the Town Increasing 2.75% so that an extra $75,000 could be directed to the Schools to give them a more manageable 3.43% budget increase. Excluding out -of -district Special Education the School's budget increased 2% overall. Several adjustments were made to cut $300,000 such as timing of Page 12 debt and pushing out some capital items, and shifting the cost of Computer Aided Dispatch software as a community priority under accommodated costs. This decreased the need for free cash usage by $200,000. Without the shared costs, the Town budget increased 1.7%. Ms. Angstrom cautioned that it would be difficult to budget in FY28 without an override. Shared costs increase 17.7% due to capital and debt increasing 42.2% for excluded projects, and benefits increasing 110%, particularly health insurance which is Increasing 14%. Vocational Schools are projected to increase 2.9%, but is difficult to predict, as enrollment is not known in advance. The Committee discussed the $50,000, or 62.5%, increase in Unemployment. Ms. Angstrom explained that even if an employee leaves, but is laid -off from a different employer, If they worked for Reading within the prior 15 months, then the Town Is still required to pay a portion. To join the unemployment pool would cost more than what is budgeted. With respect to benefits, Endri Kume suggested establishing a Benefits Reserve Fund, perhaps funded by a portion of new growth, to help with the unpredictability in benefit costs. Police/Coalition for Prevention and S uonort/Di oat h Police Chief David Clark and Deputy Chief Christine Amendola reviewed the Police Department budget for FY 2027 and highlighted their community engagement. Chief Clark outlined the staffing levels, military deployments and training Impacts on salaries, and the appeal of working in Reading. With increased overtime costs, to cover open positions and community events, the current overtime budget is not sustainable. The Department has received assistance for community policing and engagement endeavors, such as The Women's League of Reading funding the PAD program, The Trooper Tomorrow Bucci Memorial Fund will fully fund the Youth Police Academy, and local businesses donate for the Ice cream citation program. The Committee discussed several matters that could impact future budgets Including regionalizing dispatch, staffing needs as the population grows, Increasing fees, and body cameras. Chief Clark explained that regional dispatch can be costly to join due to the software, and dispatchers likely will not be familiar with Reading's geographical nuances and Individual residents' needs. As the population grows, without an increase in officers, the department will be forced to become more reactive than proactive, with decreases to community engagement, traffic enforcement, and routine patrols, which could lead to increases in homeowners and auto Insurance rates for residents. Reading currently has the highest fines allowed by the state for parking and other infractions, but there Is some wiggle room with resident and employee parking permit fees. Chief Clark also explained that while body cameras have cleared more police officers in false complaints than they have implicated, officers are split on the matter, as they are concerned over policy Issues such as generic language in the District Attorney's policy that does not allow officers to review footage when writing a report. And numerous public records requests for footage would require another staff member to manage. Police Department wages Increase 2.5%. Expenses decreased 11%, as two cruisers are normally budgeted for replacement each year. As one cruiser was recently totaled and covered by Insurance, only one needed to be budgeted, with two cruisers still being replaced. The Coalition is critical to the department by providing follow-up for people who need help with substance abuse, mental health, and parents seeking advice. There is a 3.6% Increase in wages, and the only expense increase is an extra $250 for supplies. Dispatch works 24 hours a day, 365 days a year and dispatch for Police and Fire. There is a slight decrease to the Head Dispatcher salary, as the Head Dispatcher retired after 22 years, and their successor started at a lower step. The overall salary increase is 0.3%, and expenses increase 2.6%, due to an extra $1,000 for technology and license fee increases for emergency medical dispatch. Page 1 3 Administrative Services Acting Town Manager Jayne Wellman reviewed the Administrative Services budget, which includes Operations, Human Resources, Town Manager's Office, and Town Clerk's Office and Elections. There are three elections budgeted this year: the September Primary, November State, and April Annual Town election. Ms. Wellman suggested budgeting for three elections annually going forward to minimize significant budget swings, and to account for any unexpected or special elections. In years there are no extra elections, those funds can be used on mandatory election equipment updates and maintenance. Administrative Services wages increase 5.5%. Expenses increase 0.6% overall, as there were decreases to the Town Clerk's expenses. Human resources wages increase 3.7% and expenses decrease 1.4% as the training budget was decreased. The Operations division wages increase 1.6% and expenses increase 9.8% due to an increase to postage for elections. The Town Manager's office only contains wages for the Town Manager. The 4.5% increase is a placeholder, and there may likely be a savings when the new Town Manager is hired. A decrease to property and Casualty insurance is expected once a contract Is settled. The Town Counsel line item was reduced, resulting In a 0.5% decrease to Town Manager's Office expenses. Technoloav Chief Technology Officer Kevin Furilla provided an overview of the Technology budget. He noted the budget jump for Technology Is the $80,000 increase for the computer aided dispatch software subscription, resulting in an 8.2% Increase In expenses. The department tried to cut expenses as much as possible to absorb the Impact of the dispatch software. Professional Services is budgeted at $34,500, a decrease of $5,500 from last year. Historically that line has trended lower, as consultant costs were related to projects that were budgeted elsewhere. Future increases to software licenses are uncertain. Ed Ross left the meeting at 9:00 pm. Public Services Jayne Wellman reviewed the Public Services budget. The overall Increase is 1.4% driven by a reduction in Veterans Services. Wages increase 5.8% for Community Development partially driven by Inspections due to the two new buildings being built. In Community Services, the wages for Elder & Human Services is decreasing because the state formula grant received is Increasing. Ms. Wellman opined that the general fund should fund the salaries, and the state grant funding should fund the expenses line. This is being considered when looking ahead to the FY28 budget and a potential override budget. Programs at the Senior Center have been free for the last few years thanks to ARPA funding, and the center is soon returning to a paid -for programming model. Veterans Services expenses are typically reimbursed at about 75% by the state. The cut to Veterans Services is based on the utilization of previous years. Karen Janowski of Azalea Circle, and Chair of the Council on Aging (COA), noted that the COA has some trust funds available and suggested using some of those funds to help fill the gap in the cost of programming. Einance CFO Sharon Angstrom presented the Finance budget which increases 2.7% overall. Accounting increases 3.2%, Assessor 2.5%, and Finance 2.4%. All Finance staff is non- union and will receive a step increase and a 1.25% cost of living adjustment (COLA). Expenses were cut as much as possible and decreased 1.8%. Public Health Public Health Director Ade Solarin outlined the Health Department's responsibilities and presented the FY27 budget. The budget increases 1.4% overall In the amount of $7,553. Cuts were made to the expenses budget resulting in a decrease of $6,247. EmeZEmgroencv Medical Service iEmera ncv Management Page 14 Chief Richard Nelson reviewed the Fire Department functions and budget. The fee structure was recently updated in September, resulting in an increase in fees collected. Salaries increase 3.5%. There is a requested increase in overtime to bring it closer to actual numbers of recent years. The expense budget decreased 11.1% due to a $50,000 decrease in equipment maintenance. There is a $2,000 increase to Ambulance Services for licensing, and a $17,000 increase to Billing Services, though ambulance revenue is expected to increase significantly. Department of Public Works DPW Director Chris Cole presented the FY27 DPW budget. Wages decreased 1.2%, driven by all stormwater wages and expenses moved to the Stormwater Enterprise Fund. Operations expenses Increase 3.1%, but due to the 39% Increase for the new trash and recycling contract, the department expenses increase 23% overall. Most of the increases in expenses were due to equipment parts and maintenance, fuel, pothole and sidewalk repairs, street signs, and police details. Wages in the Water Enterprise fund Increase 4.6%. Operating expenses increased 3.7% driven by cost increases in copper pipe, brass fittings, and valves. Sewer Enterprise wages increase by 4%. Operating expenses increased 3.4%, driven by an increase in Inflow and Infiltration prevention, cost of sewer station supplies, chemicals, safety equipment, and other maintenance materials. The Stormwater Enterprise fund has a 143.6% increase in wages, as all salaries were shifted here from the general fund. Operating expenses increase 2.7% due to the shift in supplies and equipment that were previously budgeted in the general fund. Readina Public Library Library Director Amy Lannon reviewed the Library budget, which increases 2.3%. A majority of that is driven by salaries, which increase 2.5% due to step increases and COLA. Expenses increase 1.5%. LSTA grants, for which the Library applies through the state and federal government, are still being funded. Depending on the project, those grant amounts can be anywhere between $5,000 and $20,000. F iac lities Facilities Director Joe Huggins reviewed the Core Facilities and Town Buildings budgets for FY27. Energy is a big driver in the Core Facilities budget, and was reduced 4%, as there is usually a savings in the energy budget due to efficiencies made over the last 15 years. Core Maintenance and Repair Increases 3.5% due to increases in materials. Plumbing expenses increase 4%. Elevator and fire equipment is also increasing driven by outside contracts, which are driven by the cost of materials, prevailing wage, and increases in rates. Overall Core Facilities expenses decrease 2% due to level funding most line items and the decrease to the energy budget. Wages for Town Buildings Increase 3.8% and expenses remain level funded. Capital & Debt There is $2,961,500 budgeted for capital, which includes $50,000 for the Permanent Building Committee, $300,000 for an elevator for the Main Street Fire Station, $55,000 for a carpenter's pickup truck, $144,000 for and ARC Flash Hazard Study, $40,000 for doors & windows at the schools, $10,000 for the telephone system at the schools, $250,000 for large-scale Technology projects, $50,000 for AEDs for Police & Fire, $60,000 for rescue tools and $30,000 for breathing bottles for Fire, $20,000 for multi -gas meters, $350,000 for turn -out gear for Fire, and $1,397,500 for various DPW equipment and projects. For debt, there is a 250.8% increase due to the $5,195,837 for the first excluded debt payment for the Killam and ReCAL projects. r@19TT4X-ZrV,7irTJ= Page 1 5 The PEG Enterprise Fund is a pass -through for RCTV to provide PEG programming services. But it is a declining revenue source. FY27 revenues are projected at $507,000. For the Landfill Enterprise Fund, the Town receives $37,000 each January. The developer is required to do monitoring. Once the developer provides proof of payment for monitoring, the Town reimburses them. The Enterprise Fund is a formality that needs to be approved by Town Meeting each year. On a motion by Marianne McLaughlin -Downing, seconded by Endri Kume, the Finance Committee voted 5-0-0 to close the Public Hearing on the FY27 Budget. On a motion by Karen Gately Herrick, seconded by Karen Rose -Gillis, the Select Board voted 3-0 to adjourn at 10:33 pm. Melissa Murphy had already left the meeting. Roll call vote: Karen Gately Herrick — Yes, Karen Rose -Gillis — Yes, Chris Haley — Yes. Future Agenda Discussion At their next meeting on March 111h, the Finance Committee will vote on the FY27 budget and Annual Town Meeting warrant articles. They will also discuss email communications and how residents can contact the Committee directly. Approve Prior Meeting Minutes Minutes will be reviewed at the next meeting on March 11'h. On a motion by Geoffrey Coram, seconded by Endri Kume, the Finance Committee voted 5-0-0 to adjourn at 10:40 pm. Page 1 6