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HomeMy WebLinkAbout2026-02-04 Finance Committee Packet Town of Reading Meeting Posting with Agenda This Agenda has been prepared in advance and represents a listing of topics that the chair reasonably anticipates will be discussed at the meeting. However the agenda does not necessarily include all matters which may be taken up at this meeting. Page | 1 2018-07-16 LAG Board - Committee - Commission - Council: Finance Committee Date: 2026-02-04 Time: 7:00 PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell Street Agenda: Revised Purpose: General Business Meeting Called By: Jacquelyn LaVerde on behalf of Chair Joe Carnahan Notices and agendas are to be posted 48 hours in advance of the meetings excluding Saturdays, Sundays and Legal Holidays. Please keep in mind the Town Clerk’s hours of operation and make necessary arrangements to be sure your posting is made in an adequate amount of time. A listing of topics that the chair reasonably anticipates will be discussed at the meeting must be on the agenda. All Meeting Postings must be submitted in typed format; handwritten notices will not be accepted. Topics of Discussion: This meeting will be held in-person in the Town Hall Select Board Meeting Room and remotely via Zoom: Join Zoom Meeting https://us06web.zoom.us/j/89020768222 Meeting ID: 890 2076 8222 AGENDA: • Call to order and Welcome • Public Comment • Liaison Reports • Approval of Deficit Spending for Snow and Ice* • Presentation on Pleasant Street Center Status and Future Planning • Update from the Division of Local Services Financial Policy Seminar held on January 29, 2026 • Birch Meadow light failure/replacement (Recreation) • Future Agendas • Approval of Prior Meeting Minutes o November 5, 2025 *Revised 2/2/2026 to add Snow & Ice agenda item. Originally posted 7:51 am, Jan 28, 2026. 2 The Future of the Pleasant Street Center 3 Quick Facts •Built in 1883 as Reading’s first municipal building. •Finished Living Area is 4,320 square feet. •Commercial Appraisal at $965,000 (4/16/25) •Rental Income Potential $72,383 (Net Operating Income) •Site located in a Multi-Family A40 Zone, but at 22,512 square feet, falls short of the 40,000 square foot minimum lot requirement. •On the Massachusetts Historic Registry and National Register of Historic Places. •Preservation Restriction Agreement on the building, controlled by the Mass Historical commission. Limits changes to interior and exterior without approval. Pleasant Street Center 4 Commercial Lease ~$20/sf ~$96,640/yr Gross Coffee Shop Grocer Food Pantry RestaurantArt/Exhibit Space Training Programs Pre-School Space (e.g. for Y) Town Use Meeting/Event Space Office Space Storage Educational Space Pleasant Street Center Potential Uses •Keep for future Town Use. •Lease to a for-profit or non-profit. •Sell the property. •Gift to Reading Housing Authority (RHA), who could leverage grants and subsidies to create 3+ affordable units to be managed by the RHA (RHA may be exempt from Multi-Family zoning limitations). 5 INspire Café, Wakefield •Sponsored by the Boys & Girls Club. •Provides meaningful employment opportunities for individuals with diverse abilities. 4Pleasant Street Center Non-Profit Examples in Other Communities 6 5 Firehouse Center for the Arts, Newburyport •Theater •Music •Gallery •Education Pleasant Street Center Repurposing Examples in Other Communities 7 Procurement Considerations •With the lease or sale of the property, the Town must engage in a competitive solicitation. •However, the Town has significant flexibility in how we handle this valuable asset. Through the structure of an RFP, we’re able to favor proposals that will serve Reading residents best, whether that be in terms of a highest dollar value for sale or lease, or a community-centered service, such as sale or lease to a non-profit organization. •Different disposal/usage requires differing authorities: the Select Board may lease the Pleasant Street Center building, in whole or in part, provided the lease does not include use of the land or parking lot on the site. Leasing the building with the adjacent parking lot, or selling the Pleasant Street Center property, requires both Town Meeting approval and a vote of the Select Board. •Initial feel from the Select Board seems to favor a lease and not sale. Pleasant Street Center 8 Discussion 9 Town of Reading Meeting Minutes Page | 1 2016-09-22 LAG Board - Committee - Commission - Council: Finance Committee Date: 2025-11-05 Time: 7:00 PM Building: Reading Town Hall Location: Select Board Meeting Room Address: 16 Lowell Street Session: Open Session Purpose: General Business Version: Draft Attendees: Members - Present: Chair Joe Carnahan, Vice Chair Emily Sisson, Geoffrey Coram, Endri Kume (remote), Joe McDonagh, Marianne McLaughlin-Downing, Ed Ross (remote), John Sullivan, Mark Zarrow Members - Not Present: Others Present: Town Manager Matt Kraunelis, CFO Sharon Angstrom, Sandy Matathia, Kate Kaminer, Karen Rose-Gillis (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 7:02 pm. Roll call: Endri Kume (remote), Ed Ross (remote), Geoffrey Coram, Joe McDonagh, John Sullivan, Mark Zarrow, Marianne McLaughlin-Downing, Joe Carnahan. Emily Sisson arrived at 7:03 pm. Public comment There was no comment from the public. Liaison reports Marianne McLaughlin-Downing shared that the Select Board settled on a 1.14 tax split. Two members had to recuse themselves due to conflicts of interest. Due to a clause in the Charter, the other three members had to vote unanimously and were able to come to a compromise. She also noted that the Select Board approved a new trash contract with Republic Services. Geoffrey Coram shared that the School Committee thanked the Finance Committee for voting for the 3% increase in the FY27 budget and acknowledged that they still have some tough work to do with budgeting. Mark Zarrow shared that the Select Board announced that the Town received a $100,000 grant for pickleball. Ms. Angstrom explained that it will allow the Town to borrow less for the project. Presentation from the CPA Study Committee 10 Page | 2 Ad Hoc Community Preservation Act Study Committee members Sandy Matathia and Kate Kaminer presented an overview of the Community Preservation Act (CPA), which is a state law that provides funding through local surcharges, with state matches, to fund projects and capital expenditures for open space preservation (conservation and recreation), affordable housing creation and preservation, and historical preservation. The charge of the Study Committee is to study the merits of the CPA and whether it should be adopted locally, and to propose a recommendation for adoption including recommended surcharge and exemptions, for eventual consideration by the voters on the ballot. The Town previously considered CPA in 2002. However, a debt exclusion for the High School was on the same ballot. The High School exclusion passed, but the CPA did not. Past projects that could have been completed using CPA funds include the purchase of the Grove Street lots, removal of dead pine trees in the Town Forest, Mattera Cabin, Community Garden, trails and boardwalks, Birch Meadow Phases 1 and 2, construction of tennis, basketball and pickleball courts, acquisition of land for recreation purposes, and historic preservation of several Town buildings including the Pleasant Street Center, Town Hall, Joshua Eaton Elementary School, Parker Middle School, and the Library. There is an acute need for affordable housing, as 29% of Reading households are cost burdened. There is a three-year waiting list for veterans, and a ten-year waiting list for other citizens. CPA funds could be used to purchase property for affordable housing, as well as provide opportunities for matching funds, and to borrow against CPA funds. The surcharge percentages being considered are 0.5%, 1%, and 1.5%. At FY25 property values, 0.5% would generate $395,000. Depending on the percentage of matching state funds, that amount could total between $450,000 and $549,000. At 1%, local surcharges could collect $790,000, totaling between $900,000 and $1,000,000 including state funds. And 1.5% would collect $1.1 million locally, with between $1.3 million and $1.6 million when state matching funds are included. The average annual tax increase at 0.5% would be $48.89, $97.79 at 1%, and $146.68 at 1.5%, with variations for the median, bottom 10%, and top 10% home values. These figures are based on adopting the exemption of the first $100,000 of home value. Other exemptions being considered are low-income and commercial. Next steps for the Study Committee are to present their report to the Select Board, then April Town Meeting to vote on whether to submit CPA to the voters for the November 2026 election. If adopted, future steps that will need to be taken include creating a Community Preservation Committee and allocating and distributing CPA funds. The Committee discussed the implementation of and potential uses for the CPA, and the potential timing coinciding with an override. Discussion on the process for considering a future override Town Manager Matt Kraunelis suggested having a joint meeting with the Finance Committee, Select Board, and School Committee to begin the discussion of an override. The process can include a review of the prior override, what might be done differently, outline a process, and assess timing. Budgeting discussions continue with department heads and budgeting continues to be as frugal as possible leading up to the override. Timing is yet to be determined, but planning for it will begin early next year. The Committee discussed past override attempts and failures, the need for educating the community on why an override would be needed, assembling an override study committee, FINCOM’s responsibility to recommend the timing of an override, and ideas to adjust the budget to stave off an override as long as possible. CFO Sharon Angstrom explained that borrowing for recent debt exclusions are scheduled to hit tax bills in FY27, and the current estimate of an override in for FY28. She stated that she would work with the bonding agent to structure spreading out the borrowing and increase from an override to prevent such a dramatic increase on households . 11 Page | 3 Discuss and vote on financial articles in warrant for Special Town Meeting Town Manager Matt Kraunelis reviewed the warrant articles for the Special Town Meeting , which will be held within the Subsequent Town Meeting. Article 2 – Senior Citizen Property Tax Exemption: This article seeks to renew the Senior Tax Discount. Where it is done through a Home Rule Petition, it has to go to the legislature. Article 3 – Adoption of State Statute to establish a Disabilities Commission: Financial impacts include fines issued for any sort of violations of the disabilities law and grant opportunities. Article 4 – Reallocating borrowed project funds: This is a revamped version of Subsequent Town Meeting Article 5 which seeks to reallocate leftover borrowed funds from previous projects to the Killam School project, instead of dividing those between the Killam Project and Reading Center for Active Living (ReCAL) Project, as recommended by the Finance Committee. On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 9-0-0 to recommend the contents of Article 2 to Town Meeting as presented. Ed Ross – Yes, Endri Kume – Yes, Geoffrey Coram – Yes, Joe McDonagh – Yes, John Sullivan – Yes, Emily Sisson – Yes, Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes. On a motion by Emily Sisson, seconded by John Sullivan, the Finance Committee voted 9-0-0 to recommend the contents of Special Town Meeting Article 3 to Town Meeting as presented. Ed Ross – Yes, Endri Kume – Yes, Geoffrey Coram – Yes, Joe McDonagh – Yes, John Sullivan – Yes, Emily Sisson – Yes, Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes. On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 9-0-0 to recommend the contents of Special Town Meeting Article 4 to Town Meeting as presented. Ed Ross – Yes, Endri Kume – Yes, Geoffrey Coram – Yes, Joe McDonagh – Yes, John Sullivan – Yes, Emily Sisson – Yes, Mark Zarrow – Yes, Marianne McLaughlin- Downing – Yes, Joe Carnahan – Yes. Reports: Marianne McLaughlin-Downing will provide the report to Town Meeting on Article 2, Emily Sisson on Article 3, and Mark Zarrow on Article 4. Future agendas The Select Board will be holding budget presentation meetings in December to which the Finance Committee will be welcome to attend. The next regularly scheduled Finance Committee meeting is February 25th. Chair Joe Carnahan provided a belated Liaison Report. The Finance Committee reached out to the Select Board to request a review of financial policies from the Division of Local Services (DLS). He joined an introductory call with Town Manager Matt Kraunelis, CFO Sharon Angstrom, Assistant Town Manager Jayne Wellman, and Select Board member Karen Herrick. The DLS offered to host a seminar with other communities sometime in January. Approve minutes for October 15, 2025 On a motion by Geoffrey Coram, seconded by Joe McDonagh, the Finance Committee voted 8-0-1 to approve the meeting minutes of October 15, 2025, with Marianne McLaughlin-Downing abstaining, as she was not present at that meeting. Roll call vote: Ed Ross – Yes, Endri Kume – Yes, Geoffrey Coram – Yes, Joe McDonagh – Yes, John Sullivan – Yes, Emily Sisson – Yes, Mark Zarrow – Yes, Marianne McLaughlin-Downing – Abstain, Joe Carnahan – Yes. 12 Page | 4 On a motion by Emily Sisson, seconded by Geoffrey Coram, the Finance Committee voted 9-0-0 to adjourn at 8:56 pm. Roll call vote: Ed Ross – Yes, Endri Kume – Yes, Geoffrey Coram – Yes, Joe McDonagh – Yes, John Sullivan – Yes, Emily Sisson – Yes, Mark Zarrow – Yes, Marianne McLaughlin-Downing – Yes, Joe Carnahan – Yes. 13