HomeMy WebLinkAbout2026-07-22 Select Board Packet
Town of Reading
Meeting Posting with Agenda
2018-07-16LAG
Board -Committee -Commission -Council:
Select Board
Date: 2026-07-22Time: 7:00PM
Building: Reading Town Hall Location: Select Board Meeting Room
Address: 16 Lowell StreetAgenda:
Purpose:General Business
Meeting Called By:Madeleine Baptiste on Behalf of Chair Melissa Murphy
Notices and agendas are to be posted 48 hours in advance of the meetings excluding
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Topics of Discussion:
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¤¯Pledge of Allegiance
Overview of Meeting
¤¯¢Public Comment
¤¯¢Discussand Vote on Override
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.
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Purpose
2026, discussion and vote regarding override
analysis and recommendations.
Executive Overview
FINCOM recommends two override tiers for the November ballot:
Summary of Financial Conditions
Structural deficit: $6.475M in FY27, $9.8M in FY28, rising to $11.4M by FY32.
Free cash regeneration has been below annual free cash use for three consecutive years.
Without an override, up to ~67 positions (combination of municipal and school positions) may
be eliminated beginning in FY28. (The schools have not provided details on budget issues and
possible cuts; this figure is an estimate.)
The Town Manager presented several override structures and amounts, consistent with the
Select Board discussion on July 14, 2026.
FINCOM reviewed these structures and their fiscal implications.
FINCOM Vote and Recommendation
FINCOM voted 80 to recommend that the Select Board place two override tiers on the ballot:
General Notes Applicable to Both Tiers
Approximately $3M may return to the operating budget beginning in FY32 when pension
obligations are fully funded; FINCOM considered this in selecting the tiers.
Decisions about specific departmental restorations or reductions (town, schools, library, etc.)
are and remain with the Town Manager, Superintendent, and
department heads.
FINCOM relied on Town Manager and CFO representations; no direct school-side budget
presentation was available at the time of the vote.
not an endorsement of either amount; final decisions on
structure, timing, and ballot language rest with the Select Board.
Tier 1: $7.0 Million Override
Intended to reduce, but not eliminate, reliance on free cash to match historical regeneration.
Moderates tax impact relative to higher tiers.
Tier 2: $9.8 Million Override
Matches the FY28 structural deficit.
Provides greater long-term stability.
Reduces risk of deeper cuts in FY29FY30, though free cash may still be needed in later years.
Ballot Structure Clarification (Tiered vs. Multi-Year)
uses a tiered override, as outlined in t
Tiered Override (FINCOM Recommendation)
Per DLS guidance (Proposition 2½ Ballot Question Requirements):
Each tier requires one ballot question.
All questions apply to the same fiscal year.
If multiple questions pass, the highest amount prevails.
This approach requires:
Two ballot questions, both for FY28.
Both worded as override questions.
Highest approved amount becomes the levy limit increase.
Phasing and Under-Levying Option
During the July 15 meeting, the CFO noted that the Select Board may explore spreading the tax impact
over multiple years through under-levying (maintaining excess levy capacity).
Key points:
Phasing does not require multiple ballot questions.
Under-levying is a Select Board policy choice, not a ballot structure.
The levy limit increases immediately upon voter approval, but the Select Board may choose to
tax less than the full amount in Year 1 and/or later years.
FINCOM neither recommends nor opposes under-levying; it simply notes it as an available tool.
Conclusion
FINCOM respectfully submits this recommendation to assist the Select Board in determining override
ballot language and amounts, should it choose to place an override on a future ballot. FINCOM remains
available to provide additional financial analysis as needed.
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2027 figures assume $3 million in regeneration each year, $8.57 million in uses in
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2026FY26, and $6.475 million in uses in FY27.
Levy Limit OverrideBallot Question(G.L. c. 59, § 21C(g)):
1AShall the Town of Reading be allowed to assess an additional $__________ in real
estate and personal property taxes for the purposes of funding the operation budget of the
Public Schools and the Municipal Government2027?
YesNo
1B Shall the Town of Reading be allowed to assess an additional $__________ in real
estate and personal property taxes for the purposes of funding the operation budget of the
Public Schools and the Municipal Government 2027?
Yes No