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HomeMy WebLinkAbout2026-03-11 Finance Committee MinutesWN Fq Town of Reading ��I Meeting Minutes aaptOPYOPPt Board - Committee - Commission - Council: Finance Committee Date: 2026-03-11 Time: 7:00 PM Building: Reading Town Hall Address: 16 Lowell Street Purpose: General Business Attendees: Members - Present: Location: Select Board Meeting Room Session: Open Session Version: Final Chair Joe Carnahan, Vice Chair Emily Sisson, Geoffrey Coram, Joe McDonagh, Marianne McLaughlin -Downing, Ed Ross, John Sullivan (remote), Mark Zarrow (remote) Members - Not Present: Endri Kume Others Present: Acting Town Manager Jayne Wellman, CFO Sharon Angstrom, Town Clerk Laura Gemme (remote), Town Engineer Ryan Percival (remote), DPW Director Chris Cole (remote); Select Board Members: Karen Rose -Gillis (remote), Chris Haley (remote), Carlo Bacci (remote); Angela Binda, Marilyn Shapleigh, Sandy Matathia 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 7:04 pm. Roll call: John Sullivan (remote), Mark Zarrow (remote), Geoffrey Coram, Ed Ross, Emily Sisson, Joe McDonagh, Marianne McLaughlin -Downing, Joe Carnahan. As there was a quorum present, Chris Haley called the Select Board to order at 7:05 pm. Roll call: Carlo Bacci (remote), Karen Rose -Gillis (remote), Chris Haley (remote). Public comment Marilyn Shapleigh of 11 John Carver Road, and member of the Council on Aging (COA), though speaking on her own behalf, provided information on the Burbank Trust Fund, which was established In 1998 to enhance the quality of life for Reading's Senior Citizens. The original $250,000 investment has grown to $389,000 today. In order to allow the fund to grow, only the interest, currently $80,000, is spent. She advocated for the one-time budget increase of $35,000, as proposed by Ron Powell in his email to the Finance Committee last week, of Burbank funds, subject to COA approval, with a focus on building up the future programming budget through the general fund. Angela Binda of Orchard Park Drive spoke regarding Article 14 of the Annual Town Meeting Warrant, which seeks to allocate revenue from the Burbank Ice Arena rent payments to a Page 1 1 stabilization fund for unified sports. She opined that the Town has not properly investigated ways to fund unified sports per an instructional motion at last year's Annual Town Meeting, and that the Burbank board members should not be dictating how the funds they pay the town should be spent. She felt that unified sports could be funded as a community priority. Chris Haley of 71 Tennyson Road, and speaking as a resident, encouraged the Finance Committee to consider what is before them tonight with regard to Article 14. He reiterated that the instructional motion approved at Town Meeting in April 2025 instructed the Town Manager and staff, inclusive of schools, identify and create a sustainable funding mechanism for expanding adaptive programming using existing town funds and future donations from the Burbank Ice Authority. Carlo Bacci of Main Street, and speaking as a resident and Select Board member, clarified that the Burbank Ice Arena Authority is not telling the Town, but rather asking the Town. to put the article on the warrant and have Town Meeting discuss it. He noted that It is another tool in the toolbox to fund unified sports. Liaison resorts Emily Sisson shared that she attended the Council on Aging and Recreation Committee joint meeting where Town staff presented preliminary budget estimates for the ReCAL facility. Key takeaways Include a $360,000 increase In operating costs for cleaning, maintenance, and utilities, and a $48,000 increase for a therapeutic recreation coordinator and front desk staff. However, there will be some offsetting revenue opportunities from both Elder and Human Services and Recreation with programming and rentals that could amount to $200,000. Ed Ross shared updates from last night's Select Board meeting where they discussed Article 14 and how it was structured to give Town Meeting the most flexibility. Other items discussed were amending the Acting Town Manager's contract and the Town Manager hiring process going forward. Geoffrey Coram shared that the School Robotics Team will be hosting a New England District event this weekend at the High School Field House. Marianne McLaughlin -Downing and Mr. Coram shared other notable achievements such as the Color Guard team winning the state championship, and the Drama Club competing in the semi-finals. Discuss and vote on FY27 Budget CFO Sharon Angstrom reviewed the proposed FY27 Budget. The Operations Division was negotiating with the Massachusetts Interlocal Insurance Association (MIIA), the Town's insurance provider, for a lower rate. Rates came In for FY27 with a little more than a $100,000 savings. Thus, Ms. Angstrom adjusted the budget to reduce free cash use by $100,000. Acting Town Manager Jayne Wellman attributed the reductions to the Town's excellent loss ratios and cross -department efforts to keep risk low. When asked if the $80,000 for the Computer Aided Dispatch software budgeted as a community priority affected the split between town and school budgets, Ms. Angstrom explained that neither budget was affected, as there was a savings in the timing of debt, which was already budgeted in accommodated costs, and the $80,000 came out of that reduction. She further clarified that the School operating budget increased by 3.43% when accommodated costs for out -of -district special education are not Included, but only 2% overall when the reduction in accommodated costs were included. Similarly, the Town budget Increased 2.75% without shared costs, such as utilities budgeted under Facilities, and property and casualty insurance budgeted under Administrative Services, the increase is only 1.4% with accommodated costs. Some accommodated costs are budgeted within the departments, but shared costs such as debt and capital are budgeted outside of specific department line items. Ms. Angstrom provided further explanation on how budgeting for a community priority is not often used, unless something beneflts both Town and Schools. In a healthier budget year, Gage 1 2 unified sports could have been budgeted as a community priority. Acting Town Manager Jayne Wellman noted that Level 1 budget conversations about what fully funded department budgets look like have not been happening in the last few years, as the guidance they have received has been to level fund, or keep to 2.5%. She suggested making an effort to have Level 1 budget conversations. Mr. Carnahan suggested allocating $25,000, a figure indicated by the school department that could help expand the program, for unified sports as a community priority since free cash usage was decreased. Following discussion, the Committee agreed to delay voting on the budget until later in the meeting. They wanted to first vote on the warrant articles so that remote members could leave early and avoid having to roll call vote on the 30 separate budget line Items. Article 4 - Capital Improvements Amendments Ms. Angstrom reviewed proposed changes to the Capital Plan. General Fund amendments for FY26 include an additional $50,000 for the replacement of a Town Hall AC unit and $30,000 for a Town Hall upper roof project. Other future General Fund amendments include a $65,000 net decrease in FY27 for various items, and a $564,000 net change for various items plus $500,000 borrowing for Driscoll Field lighting replacement in FY28. The only change to Enterprise Funds in the Capital Plan is to the Water Enterprise Fund to add $150,000 in FY27 for a water capital master plan. The Select Board de facto adjourned at 8:13 pm, as Carlo Bacci left the meeting and the Select Board no longer had a quorum. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 4 to Town Meeting as presented. Roll call vote: Mark Zarrow - Yes, John Sullivan - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Joe McDonagh will deliver the Finance Committee report on Article 4 to Town Meeting. Article 5 - FY26 Budget Amendments: Ms. Angstrom detailed the budget adjustments for the current fiscal year's budget totaling a $1,586,000 request from free cash, which includes $800,000 for snow and ice expenses due to the significant stones this past winter, $75,000 for assessing revaluation services, $250,000 for Police overtime, and other adjustments. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 5 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Joe Carnahan will deliver the Finance Committee report on Article 5 to Town Meeting. Article 7 - Other Post Employment Benefits (OPEB), This is a request on the FY26 budget to transfer funds to the OPEB trust totaling $325,000 comprised of $200,000 from the General Fund, $85,000 from the Water Enterprise Fund, $25,000 from the Sewer Enterprise Fund, and $10,500 from the Storm water Enterprise Fund. While there is no mandate yet to fully fund OPEB, pension is mandated, which Reading is scheduled to have fully funded by 2032. Once the pension liability is fully funded, those funds will be redirected to OPEB until It is also fully funded. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 7 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Endri Kume will deliver the Finance Committee report on Article 7 to Town Meeting. Page 1 3 Article 8 - Revolvino Funds: Ms. Angstrom explained that this is an article that appears every year to approve the spending limits on existing revolving funds. There are no new funds and no changes to the spending limits. The only change is to the projects listed in the Inspections Revolving Fund bylaw. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 8 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Marianne McLaughlin -Downing will deliver the Finance Committee report on Article 8 to Town Meeting. Article 9 - Rescind Debt: Ms. Angstrom explained that while reconciling records with the bonding agent, they realized there was an authorized but unissued debt for $422,000. In April 2015 Article 16 was approved for $422,000 of debt from MWRA. However, the grant - debt program was for $1,688,000, 75% of which was grant and 25% was loan, and only the debt portion of the offering was authorized. It was corrected at the following November Town Meeting, Including the $422,000 that was already authorized. This article clears up the duplicate authorization of debt that was never issued. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 9 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Endri Kume will deliver the Finance Committee report on Article 9 to Town Meeting. Emily Sisson will deliver the report if Endri is not available. Article 11 Parkland A ouisitions and Renovations for Communities (PARC) Grant, Ms. Wellman stated that the Town applied for and received a PARC grant In the amount of $100,000 to help offset expenses related to pickleball. In order for the Town to accept the $100,000, the parcel of land that the courts are on must be forever preserved as recreational space, and the Town must ensure that there is some parking associated with it This article seeks to divide the parcel for pickleball separate from ReCal so that eight (8) parking spots immediately adjacent to the courts are dedicated to pickleball. This will dedicate the pickleball space to recreation in perpetuity in order to accept the grant. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 11 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Mark Zarrow will deliver the Finance Committee report on Article 11 to Town Meeting. Article 13 - Community Preservation Act, This article seeks to put the Community Preservation Act (CPA) before the voters of Reading on the November ballot. As Mr. Carnahan is also the Chair of the Ad Hoc Community Preservation Act Study Committee, he outlined the exemptions as recommended by the Study Committee. The Finance Committee discussed timing and if CPA might jeopardize an override, which Ms. Angstrom recommended may also need to be on the ballot in November for the FY28 budget. Marianne McLaughlin -Downing noted the pandemic and ARPA funds received prolonged the override that was approved in 2018 and suggested the CPA vote come after an override vote so that voters know how much the excluded debt and override impact them before deciding on CPA. Ms. Angstrom noted the override would be needed as inflation has impacted accommodated costs such as health insurance, property and casualty insurance, rubbish and recycling, and energy contracts. Accommodated costs have seen significant increases in recent years and further increases are anticipated. Gage 1 4 On a motion by Ed Ross, seconded by Geoffrey Coram, the Finance Committee voted 7-1-0, with Marianne McLaughlin -Downing opposed, as she expressed concern with the timing of a CPA vote coinciding with an override vote, to recommend the contents of Article 13 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Joe Carnahan - Yes, Marianne McLaughlin -Downing - No, Joe MCDonagh - Yes, Emily Sisson - Yes. Emily Sisson will deliver the Finance Committee report on Article 13 to Town Meeting. Article is - Stabilization Funds for Unified Sports: This Article seeks to allocate funds from Burbank Arena rental payments for the purposes of funding unified sports programs. Two stabilization funds are proposed: one for the school department for adaptive programming, which includes unified sports, and one for the recreation department adaptive and therapeutic programming. At the Select Board meeting last night, they decided to enable Town Meeting to determine how much of the rental payments, between 25% and 100%, be dedicated to one or both funds. This article stems from an instructional motion approved by Town Meeting last year and working with the Superintendent of Schools. The Committee discussed other stabilization funds, whether a cap could be established on the proposed funds, and how stabilization funds need 2/3 approval by Town Meeting to be expended. Ms. Angstrom noted that the revenue is unique, as the money received from Burbank is unpredictable, is not budgeted, and just flows right into free cash when it is received. The amount the Burbank Arena pays in rent some years is zero, as the building gets older and they are spending more on their capital needs, though the yearly average since 2010 is about $63,000. She noted these funds could be used to help fund the programs in the future. Ms. Wellman stated that she would check with Town Counsel on whether a cap could be instituted on the balance of the funds. The Finance Committee was divided on the article for several reasons. Town Meeting can fund Unified Sports without the added steps of having to approve the use of money from the stabilization funds. Creation of the stabilization funds could constrain what Town Meeting could do with the money in the future. Some cautioned about relying on unpredictable funds to fund a program for which there is a demand. Unified sports should be an annual operating cost and added to the baseline budget. Others argued that creating stabilization funds gives the right indication in trying to fund unified sports. Ms. Angstrom also noted that current budget challenges do not leave much room for adding things to the budget and this is a way to show a commitment towards the program. Some members expressed a preference to fund unified sports as a community priority, as there is such a demand in the community for the programs, and the Schools Indicated that $25,000 could help expand their program. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 4-4-0, to recommend this article to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - No, Ed Ross - Yes, Emily Sisson - No, Joe MCDonagh - No, Marianne McLaughlin -Downing - Yes, Joe Carnahan - No. Ed Ross will deliver the Finance Committee report on Article 14 to Town Meeting. Article 15 - Parker Turf: The Parker Turf field is 18 years old, worn, and past its typical life of about 10-12 years. The article seeks to authorize debt to replace the field as well as make other improvements such as ADA accessibility and replacing the deteriorated and oversized bleachers. The estimated cost is $1.7 million. Other potential add-ons include a scoreboard, storage building, and repaving of the access road, should bids come in under budget. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 15 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. John Sullivan will deliver the Finance Committee report on Article 15 to Town Meeting. Article 16 - Sewer Pump Stations: This article seeks to authorize debt to replace two sewer pump stations. The Joseph Way pump station was built in 1974, and Brewer Lane pump station was built in 1979. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 8-0-0 to recommend the contents of Article 16 to Town Meeting as presented. Roll call vote: John Sullivan - Yes, Mark Zarrow - Yes, Geoffrey Coram - Yes, Ed Ross - Yes, Emily Sisson - Yes, Joe McDonagh - Yes, Marianne McLaughlin - Downing - Yes, Joe Carnahan - Yes. Joe McDonagh will deliver the Finance Committee report on Article 16 to Town Meeting. Discuss Finance Committee Report to Town Meeting The Committee reviewed Chair Carnahan's draft Report to Town Meeting. Corrections were made to the free cash amount and the budget increase percentages as Ms. Angstrom clarified earlier in the meeting, along with other minor wordsmithing edits. The Committee did not have time to discuss the potential FY28 override or email communications items on their agenda. They agreed to host a Financial Forum to discuss the override with the Select Board and School Committee on May 20'h. The discussion on email communications will also be tabled to another meeting. Discuss and Vote on FY27 Budget (continued) John Sullivan and Mark Zarrow left the meeting at 10:39 pm. Ms. Wellman confirmed with Town Clerk Laura Gemme via text to ensure that the Committee could continue voting without roll call, as there were no longer any remote members in attendance. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line B99 Benefits in the amount of $27,781,905 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line C99 Capital in the amount of $2,961,500 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line D99 Debt Service in the amount of $8,247,736 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line E99 Education - Vocational in the amount of $1,603,261 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line F99 Finance Committee Reserves in the amount of $200,000 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line G91 Administrative Services Wages in the amount of $1,336,100 to Town Meeting as presented. Page 1 6 On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line G92 Administrative Services Expenses in the amount of $1,595,923 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line G91a Technology Wages in the amount of $560,200 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line G92a Technology Expenses in the amount of $845,200 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line H91 Public Services Wages in the amount of $1,586,300 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line H92 Public Services Expenses in the amount of $285,500 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line I91 Finance Wages in the amount of $1,160,700 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line I92 Finance Expenses in the amount of $148,875 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line 191 Public Safety Wages in the amount of $14,686,100 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line 392 Public Safety Expenses in the amount of $815,211 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line K91 Public Works Wages in the amount of $3,333,000 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line K92 Public Works Expenses in the amount of $1,080,500 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line K93 Public Works Snow & Ice in the amount of $675,000 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line K94 Public Works Street Lights in the amount of $135,000 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line K95 Public Works Rubbish in the amount of $3,068,709 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line L91 Library Wages in the amount of $1,854,550 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line L92 Library Expenses in the amount of $456,750 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line M91 Core Facilities in the amount of $4,030,847 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line M92 Town Buildings in the amount of $400,236 to Town Meeting as presented. Emily Sisson moved to recommend the contents of line U99 School Department in the amount of $59,664,599 to Town Meeting as presented. The motion was seconded by Ed Ross. Geoffrey Coram moved to increase the amount of line U99 by $25,000 specifically for unified sports to the School Department FY27 budget for a total amount of $59,689,599. The motion was seconded by Ed Ross and approved by the Finance Committee by a vote of 6-0-0. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line W99 Water Enterprise Fund in the amount of $8,582,766 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line X99 Sewer Enterprise Fund in the amount of $7,004,057 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line Y99 Storm Water Enterprise Fund in the amount of $779,475 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line Z99 PEG Access Enterprise Fund in the amount of $506,000 to Town Meeting as presented. On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to recommend the contents of line ZZ9 Landfill Enterprise Fund in the amount of $37,000 to Town Meeting as presented. Emily Sisson will deliver the Finance Committee report on Article 10 to Town Meeting Review and approve prior meeting minutes On a motion by Emily Sisson, seconded by Ed Ross, the Finance Committee voted 6-0-0 to approve the meeting minutes of February 25, 2026, as presented. On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 6-0-0 to adjourn at 10:S4pm.