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HomeMy WebLinkAbout1989-04-10 Annual Town Meeting MinutesJz~P. l ADJOURNED ANNUAL TOWN MEETING FIRST BUSINESS SESSION Reading Memorial High School April 10, 1989 The meeting was called to order by the Moderator Paul C. Dustin, at 7:46 P.M., there being a quorum present. The Invocation was given by Reverend E. Lewis MacLean of the Church of the Nazarene, followed by the Pledge of Allegiance to the Flag and the Town Meeting Member's Pledge. I The warrant was partially read by the Town Clerk, Doris M. Fantasia, when on motion of Russell T. Graham, it was voted to dispense with further reading of the warrant, except for the officer's Return, which was then read by the Town Clerk. ARTICLE 2. Eugene R. Nigro presented the Robert S. Wells Award to Virginia F. Standley for outstanding service to the School Department, as secretary in the Superintendent's Office. ARTICLE 2. The following "State of the Town" Report by Rus- sell T. Graham, was accepted as a Report of Progress: STATE OF THE TOWN Mr. Moderator: As we begin this the 245th Town Meeting of Reading, it is my pleasure to present on behalf of the Board of Selectmen, the an- nual State of the Town Report. This is the third year of government under our Charter. For many it seems like only yesterday that we began this new form of government. For others it seems much longer. There are many days when Peter Hechenbleikner feels like it has been an eternity. While not without its expected problems, life under the Charter continues to serve the people of Reading well and to provide a level of service and even efficiency in which we can, for the most part, take great pride. . One element of that pride is the high level of competence and dedication evidenced on a daily basis by our Town employees. Government is people and we have in the service of our Town excellent people. In recognition of this, the Board of Selectmen has estab- lished an Employee-Awards program and seven employees have thus far been singled out for recognition and reward. The Robert S. Wells award just presented is another example of our intent to render respect to our greatest asset - our people. The Exemplary Teacher Award given on Thursday, is another example of that respect. In this area of personnel, negotiations with the five bar- gaining units of Municipal government and with the many units on the school side, have taken and continue to take up an enormous amount of government time and effort. i The results of these negotiations reflect themselves in the budget presented to you in this Town Meeting. Almost 70% of the Budget to be reviewed by you represents salaries and employee benefits. If we take, as a given that good employees make for good government, that good teachers and good administrators make for good education, then the greatest challenge before us remains how we are to retain and or attract those good employee's under the severe restraints of our present fiscal situation. e~ 314 Adjourned Annual Town Meeting April 10, 1989 In an ongoing attempt to work with our employees, a pay and grade classification study is under way and in cooperation with employees, a new set of Personnel Policies is under review by the Board of Selectmen. .In the area of providing for and managing the space in which our personnel must work, the solutions "slowly" move toward resolution. The Board of Public Works is fully functioning in its new facility. Town Meeting has approved, and work goes on, in the building of a new fire station to replace our present antiquated and inef- ficient building. A committee has been formed to seek out and recommend a per- manent home for our Council on Aging Drop in Center now tem- porarily set up in the Pearl Street School. On the Hill in Town Hall, surely no area of our functions seems to have been so fully studied, and all such study ended without benefit of resolution. All of this, despite the superb job done by the Municipal Space Building Committee. This it would seem because the financial needs and priorities of the Town have not allowed us to accept the high costs associated with the complete packages asked for and presented to us. Without action however, the basic problems of inadequate space, unhealthy environmental factors and lack of handicapped access remain. In an attempt to stick to these very basic and very real areas of concern, the Board of Selectmen instructed the Town Manager and the Director of Public Works, Tony Fletcher, to come up with a plan which would address these problems at the absolute least amount of cost. That plan will be presented to you at this Town Meeting. Incidentally should that plan win your ap- proval, it will henceforth be known as the Selectmen's Space Plan. Should it be defeated on the floor it shall ever after be referred to as the Fletcher Space Plan.. Traffic, traffic and more traffic seems to have become the bane of our society, nationally, on the state level and certainly here in Reading. The CPDC continues to attempt to work on solutions to this CURSE of modern civilization. On the East Side, on the West Side. and in the Depot area, the Town working with its citizens con- tinues to struggle with what seems to be an almost insurmountable problem, but as the Depot area attests, solutions, although not perfect or satisfactory to everyone, are in fact possible. The problem however, is not just a local one caused by or capable of cure by Reading alone. The problems begin and go beyond our borders. The solutions to be viable must be in conjunction with and accompanied by the support of our neighboring communities. In this area, the Metropolitan Area Planning Council has or- ganized the North Suburban Planning Council to bring together Reading and its neighbors in a regional attempt to address issues which cross Town borders. Reading has endorsed and joined that Council and remains active in supporting its purpose. Gene Nigro of our Board and George Hines of the CPDC;are to be commended for their continued involvement in this endeavor and in their consistent efforts at improving communications between us and our neighbors. 335 Adjourned Annual Town Meeting April 10, 1989 The only thing that we seem to have more of in our society than traffic, is trash. The problem of trash and what to do with it is one of the most serious long range issues of our time. The Board of Selectmen has created a Solid Waste Committee to study the effects of and the solutions possible to us both economically and environmentally. In a short period, that committee has recommended and the Town has implemented a Leaf CompostingProgram and a Newspaper Recycling Program to begin to address the problem. The Committee continues its work in an ongoing commitment to a recycling program that soon will be inevitable in every community. It is an issue whose time has come and the response of the people of Reading has been overwhelmingly positive. In the Town of Reading as in every municipality across the Commonwealth, the major issue on the agenda is financial. For the first year since Proposition 2 1/2 came into being, State aid to Cities and Towns will not be increased, and may in fact be decreased. State aid represents about 1/3 of the total receipts avail- able to Reading and any reduction will have serious effects. How frightening it is for us to reflect that we are that de- pendent on the actions that take place on Beacon Hill. Total property tax revenues, that is every dollar collected in real estate taxes in Reading now only represents about one half of the monies we need for appropriations for services in Reading. All real estate taxes collected in Reading now do not in fact total enough money to even cover the payroll of the Town. We thus have a very real necessity to seek out other means of revenue, to seriously analyze every expense of the Town and to very carefully scrutinize any new programs being considered. Central to that need for additional revenue to augment our restricted tax levy is the Sale of Real Estate. Reading Town Meeting having foreseen this eventuality em- barked on a prudent financial plan to sell off real estate it did not use and did not need in order to sustain its school system and its Municipal Government. Over One Million Dollars of the FY90 Budget receipts, to be presented, come from that endeavor. Put in another way, had we not embarked on that program, this FY90 Budget would have to be slashed by over One Million Dollars. I know of no one who is familiar with the budget of this Town who would not concur that such a cut would wreak havoc on the service of Reading and would do irreparable harm to our quality of life. In the year just ended, 1.4 million was received from the sale of the Community Center. The sale of our landfill, to Homart is ongoing despite the withdrawal of Embassy Suites from the site. A full report on that will be forthcoming from Jack Russell. A decision on the sale of Bear Hill is imminent and transfer of the Pearl Street School and approval to sell are both items on this warrant. 336 Adjourned Annual Town Meeting April 10, 1989 The Budget process, this year, has been to use an under- statement, a frustrating experience. Questions of availability of revenue, ongoing negotiations with the bargaining units and questions of priority of service impeded both the timetable and the make-up of the budget. Despite these frustrations, and in some small measure per- haps because of these frustrations, you will have before you a balanced budget which does not include as a part of its content the need for new user fees to be charged to the taxpayers of Reading nor the contemplation of an override to Proposition 2 1/2 by the taxpayers of Reading. The Board of Selectmen must make it as plain as possible and will articulate very clearly that as elected representatives of the people, it will not entertain additional taxes, under whatever name we may give to those taxes nor will we propose to the ballot an override of Proposition 2 1/2 until every in- dividual line of the budget has been thoroughly analyzed and every other means of supporting that budget have been proposed, studied and acted on. In our opinion, that is what the people of Reading deserve from their officials and it is that they will receive. That is not to say that such measures may not well be in- evitable if the citizens of Reading desire continuation of our high quality of service, but they can should only be contemplated after all other avenues have been exhausted. It is the intent of the Board of Selectmen to meet with the Town Manager, the School Committee and the Superintendent of Schools within the first quarter of FY90 which begins in July, in a series of meetings to analyze the next fiscal year to measure the needs and the priorities of our respective areas and then with the Finance Committee to determine the fiscal status of the Town. We can then, work together well in advance of the Budget year, to determine if and where decreases in expenses are pos- sible of if in fact only an increase in revenue, by whatever means, will be necessary to sustain Town Government at acceptable levels. The Town Officials and its Managers will thus know where they stand and can begin to plan the necessary course of action for Reading in a time frame which allows for intelligent actions and negates the frustration and stress so implicit in this year's exercise. A progress report on that plan will be presented to you in the Fall Town Meeting. Finally, Mr. Moderator, no discussion of the state of the Town of Reading is complete without some recognition of what is the essence of Reading. We enter this hall as neighbors, as friends, as parents, as concerned members of a community whose primary desire must be to preserve the Town we love. We may approach that serious duty with different perspec- tives and with varied opinions but we must never lose sight of who we are and why we are so gathered. Respect for and an appreciation of those perspectives and those opinions are the very essence which makes us the Town we are. We need not nor indeed should we agree on all matters, but in the end we must arrive at a consensus and we have to leave this hall prepared to build on that consensus. REPORT OF THE SCHOOL COMMITTEE ABOUT PLANS FOR ADDING CLASSROOMS AND MAKING RENOVATIONS TO THE JOSHUA EATON AND BIRCH MEADOW MR. MODERATOR, TOWN MEETING MEMBERS, SELECTMEN AND OTHER TOWN OFFICIALS, PARENTS AND CITIZENS THE READING SCHOOL COMMITTEE EMBARKED ON A PLAN TO ADD CLASSROOMS TO TWO ELEMENTARY SCHOOLS AND TO CARRY OUT RENOVATIONS TO THESE TWO SCHOOLS TO BRING THEIR FACILITIES TO PAR WITH THE OTHER SCHOOLS IN READING. THE SCHOOLS ARE JOSHUA EATON ELEMENTARY AND BIRCH MEADOW ELEMENTARY. THE PLAN EMERGED FROM A YEAR LONG STUDY WITH A RECOMMENDATION PREPARED BY AN ADVISORY COMMITTEE OF CITIZENS/SCHOOL OFFICIALS/ PARENTS. BOTH LONG RANGE AND SHORT RANGE PROJECTIONS OF SCHOOL ENROLLMENTS CONFIRM THAT THE READING PUBLIC SCHOOLS WILL SEE AN UPSURGE OF PUPILS DUE MAINLY TO ADDITIONAL HOMES BEING BUILT. IN THE TOWN, AND THAT AN INCREASE OF PUPILS WILL CALL FOR ABOUT 6-8 CLASSROOMS AT OUR ELEMENTARY SCHOOLS. THE GROWTH WILL BE GREATEST IN THE BIRCH MEADOW SCHOOL AREA. IT IS CLEAR THAT WE WILL NOT SEE A MASSIVE UPSURGE IN THE NEXT DECADE. THE PEARL STREET SCHOOL WAS MOTHBALLED IN ANTICIPATION OF FUTURE SCHOOL NEEDS. THE SCHOOL HAS NOT HAD CLASSES FOR READING SCHOOL CHILDREN SINCE 1984, AND IN THE INTERVENING.YEARS, SCHOOL OFFICIALS HAVE KEPT A WATCHFUL EYE ON BIRTH STATISTICS, SCHOOL ENROLLMENT, HOUSING SALES, AND HAVE NOT SEEN AN EXTREME RISE IN THE POTENTIAL SCHOOL POPULATION WHICH WOULD CALL FOR A REOPENING OF THE SCHOOL TO ACCOMMODATE THE SCHOOL'S CAPACITY OF 400*OR SO STUDENTS. -2- DEMOGRAPHIC AND LAND USE STUDIES TELL US TO EXPECT AN UPSURGE OF 150. OR SO STUDENTS WHICH WOULD MOST LIKELY DROP DOWN TO PRESENT LEVELS WITHIN A FIVE-YEAR PERIOD OF TIME. TO RESPOND TO THE LONG-RANGE NEEDS OF THE ELEMENTARY SCHOOLS FOR BOTH THIS MINOR ENROLLMENT SURGE, AND TO READY THE TWO OLDER ELEMENTARY SCHOOLS (1948, 1960) FOR LONG- TERM USE BY ENLARGING LIBRARIES AND RENOVATING LARGE MULTI-PURPOSE ROOMS, THE SCHOOL COMMITTEE HAS ADOPTED A MODEST TWO-SCHOOL PLAN TO ADD CLASSROOMS AND MAKE SIMPLE RENOVATIONS. PEARL STREET SCHOOL WILL NOT BE NEEDED AS A FULLY ACTIVE SCHOOL, AND COSTS TO REHABILITATE IT FOR ENROLLMENT INCREASES WOULD COST MORE THAN ADDITIONS/RENOVATIONS TO THE TWO ELEMENTARY SCHOOLS. THE SCHOOL COMMITTEE'S ADVISORY COMMITTEE RECOMMENDED THAT "THE SCHOOL COMMITTEE OBTAIN AN UNDERSTANDING FROM THE BOARD OF SELECTMEN AND TOWN MEETING THAT ANY PROCEEDS RECEIVED FROM THE SALE OF PEARL STREET SCHOOL AND PROPERTY SHOULD GO INTO A CAPITAL IMPROVEMENT FUND TO BE USED FOR SCHOOL IMPROVEMENTS." WHILE THE SCHOOL COMMITTEE HAS NOT ADOPTED THIS POSITION FORMALLY AND CLEARLY NO SUCH CAPITAL FUND EXISTS, IT WANTS TO CONVEY THAT THE DECISION TO FREE UP PEARL AND RENOVATE AND ADD ROOMS AT THE TWO ELEMENTARY SCHOOLS ARE INEXTRICABLY INTERTWINED. AT TOWN MEETING LAST FALL, THE READING SCHOOI, COMMITTEE ASKED THE MODERATOR TO APPOINT A LEGALLY-DESIGNATED SCHOOL BUILDING COMMITTEE AND MR. DUSTIN HAS MADE APPOINTMENTS OF FOUR (4) TOWNS- PEOPLE TO THIS COMMITTEE. THIS FEBRUARY, THE SCHOOL COMMITTEE PREPARED A DRAFT WARRANT ARTICLE FOR THIS SPRING TOWN MEETING WHOSE PURPOSE WAS TO FUND THE DESIGNATION OF AN ARCHITECT WHO WOULD DRAW UP PLANS FOR THE ADDITIONS/ RENOVATIONS TO THE TWO SCHOOLS. WHEN IN LATE FEBRUARY, THE SCHOOL -3- COMMITTEE AND SUPERINTENDENT CHOSE NOT TO FILL A SUPERVISORY POSITION FOR THE REMAINDER OF THIS ACADEMIC YEAR, $15,000 BECAME AVAILABLE TO USE TO FUND THE SERVICES OF AN ARCHITECT ON THIS PROJECT. THE ARTICLE WAS, CONSEQUENTLY, NOT INCLUDED IN THIS ANNUAL WARRANT SINCE THE MONEY WAS AVAILABLE TO EMPLOY AN ARCHITECT THIS SPRING. THE BUILDING COMMITTEE WILL BE INTERVIEWING ARCHITECTS AND SELECTING ONE FIRM SHORTLY. THE BUILDING COMMITTEE WILL USE, AS IT MUST, THE DESIGNER SELECTION RULES OF THE COMMONWEALTH OF MASSACHUSETTS. IT IS THE PLAN OF THE SCHOOL COMMITTEE TO ASK THAT THE BUILDING COMMITTEE AND THE ARCHITECT PREPARE PRELIMINARY PLANS AND BUILDING SPECIFICATIONS IN THE NEXT FEW MONTHS WITH THE AIM OF PRESENTING TO THE FALL 1989 TOWN MEETING A PLAN FOR ADDING TO THE JOSHUA EATON AND BIRCH MEADOW ELEMENTARY SCHOOLS. THE SCHOOL COMMITTEE WILL KEEP THE TOWN MEETING AND THE CITIZENRY INFORMED OF DEVELOPMENTS AS THEY OCCUR. APRIL 7, 1989 REPORT OF THE SCHOOL COMMITTEE ON PLANS FOR THE RELOCATION OF PORTABLE FROM PEARL TO EATON MR. MODERATOR, MEMBERS OF TOWN MEETING, SELECTMEN, TOWN OFFICIALS AND CITIZENS THE READING SCHOOL COMMITTEE HAS DEVELOPED A PLAN FOR ADDRESSING SCHOOL ENROLLMENT NEEDS AND HAS DONE SO WITH AN EYE TO THE COST EFFECTIVENESS OF THE PLANS. THE PLAN CALLS FOR ADDITIONS TO BIRCH MEADOW AND EATON AS THE BEST LONG TERM SOLUTION, AND THE ABANDONMENT OF PEARL STREET AS A BUILDING TO ACCOMMODATE THE MODEST INCREASE IN STUDENTS WE EXPECT. THE INCREASE IN NUMBERS OF PUPILS IN THE EARLIEST GRADES IS ALREADY UNDERWAY, AND THE STUDENTS HAVE BEEN FITTED IN NEATLY, BUT TIGHTLY, INTO OUR PRESENT FOUR ELEMENTARY SCHOOLS. WE WILL NEED SPACE EVEN AS WE PLAN FOR THE ADDITION OF 6 to 8 CLASSROOMS SINCE OUR PLANNING PROJECTS THE NEED TO REACH ITS HIGHEST PEAK IN THE EARLY 1990'S. TO MEET THE ELEMENTARY SCHOOL POPULATION INCREASE WHICH IS APPEARING RIGHT NOW, THE SCHOOL COMMITTEE SOUGHT TO RELOCATE THE PORTABLE CLASSROOM OWNED BY THE SCHOOL DEPARTMENT TO THE JOSHUA EATON SCHOOL TO MEET AN ENROLLMENT PRESSURE THERE. AN ARTICLE WAS DRAFTED BY THE SCHOOL COMMITTEE IN FEBRUARY FOR THIS SPRING'S TOWN MEETING TO RAISE MONEY FOR THE RELOCATION. IN LATE FEBRUARY, THE TOWN MANAGER, TOWN ACCOUNTANT, AND SCHOOL COMMITTEE AGREED THAT THE RENTAL FUND OF THE PEARL STREET SCHOOL WAS AVAILABLE TO SPEND ON PROJECTS NEEDED TO MAINTAIN THE SCHOOL AND ITS SITE, AND THAT THE PROCESS OF REMOVING THE PORTABLE CLASSROOM PRESENTLY AT PEARL WOULD CONTRIBUTE TO THE BETTERMENT -2- OF THE SCHOOL PROPERTY. WITH THE CONCURRENCE OF TOWN OFFICIALS, IT WAS AGREED TO USE $26,000 FROM THE PEARL STREET FACILITIES ACCOUNT TO PAY FOR RELOCATION COSTS. . SINCE THAT DATE, A PROPOSAL FOR THE SERVICES OF A RIGGING FIRM HAS BEEN ADVERTISED, AND THE PROCESS OF RELOCATING THE PORTABLE BUILDING IS UNDERWAY SO THAT IT CAN BE READY AT JOSHUA EATON FOR STUDENTS WHO ENTER THE SCHOOL IN SEPTEMBER 1989. APRIL 7, 1989 3 3 7 Adjourned Annual Town Meeting April 10, 1989 That respect, that appreciation, that determination to work together towards the common good is what makes this community different from other more political areas of the Commonwealth. It is what defines us as Reading. If we can keep faith with this approach to government during our deliberations then we shall surely find solutions to our long litany of problems and who knows Mr. Moderator, we may even find ourselves having fun doing it. Thank you. ARTICLE 2. The attached report was presented by Margaret D. Cowell of the School Committee and accepted as a Report of Progress: REPORT OF THE SCHOOL COMMITTEE ABOUT PLANS FOR ADDING CLASSROOMS AND MAKING RENOVATIONS TO THE JOSHUA EATON AND BIRCH MEADOW ARTICLE 2. The attached report was presented by Carol S. Lyons of the School Committee and accepted as a Report of Progress: REPORT OF THE SCHOOL COMMITTEE ON PLANS FOR THE RELOCATION OF PORTABLE FROM PEARL TO EATON ARTICLE 2. The following report was presented by John H. Russell, of the Board of Selectmen, and accepted as a Report of Progress: REPORT OF PROGRESS ON THE LANDFILL SALE AND DEVELOPMENT I'm sure that by now you are all aware that 2 1/2 weeks ago Embassy Suites withdrew from the Landfill Development. The stated reason for their withdrawal was greatly increased develop- ment costs and an inability to agree with Homart on the alloca- tion of these increased costs. This meant that, at a point when time was critical for both Homart and the Town, we no longer had a hotel developer. One option was to start over with marketing the hotel site. This would mean at least a year to a year and a half delay. Such a delay would cause increased costs to Homart whose negotiated site construction contracts must be picked up before June 30, or they will face an additional 10% increase. The delay would also cause great problems with the myriad of State environmental per- mits which are also time dependent... This option was not accept- able to Homart, who is already facing site development costs which are 6 to 8 million dollars over their original estimate. Many of the cost increases are attributable to the Massachusetts DEQE, Massachusetts Environmental Protection Agency, and State Department of Transportation requirements all of which are still evolving and which are becoming more expensive day by day. Homart assured us that they were still interested and proposed a viable option based on one of the""what if" provisions in the original purchase and sale agreement. The original agree- ment with Homart contained a clause that stipulated that if, in the event that the hotel parcel was not sold, at the end of 5 years, Homart would purchase the lot for $1.5 million. Homart proposed that they purchase the hotel site now, for $1.5 million provided that other modifications could be agreed to that would help to alleviate their increased land development costs. They would then proceed with overall site preparations while, in parallel, attempting to find another hotel developer. It is very important to both Homart and the Town to have a hotel in the project. Homart has by experience found that a hotel is 338 Adjourned Annual Town Meeting April 10, 1989 key to a successful office park. To the Town, a hotel means $200,000 - $300,000 per year in hotel occupancy tax income. While no one can guarantee that a hotel outfit can be found, it's a pretty good bet. At least two major chains have recently shown interest. Negotiations continued along this line and the Town and Homart project team have reached an agreement which was submitted to the hotel Board of Directors today and which will be voted on at the next meeting in late May. Under this agreement - * Homart purchases the complete landfill, including the hotel site, for $6.25 million cash on closing. This meets the minimum price established by Town Meeting. Closing could be as early as late June. * Homart will use "best efforts" to secure a hotel for the project. * Homart will assume the liability with regard to hazardous waste clean-up, up to $2 million. This is a concession which does not require Homart to stock an indemnity fund up front. They must, however, cover the liability as it occurs. * Homart will pay the Town "interest" at the rate of 8% on $1.375 million or the balance remaining in the indemnity fund for four years. The fund will be reduced by 25% every four years un- til it is depleted after sixteen years. This is a replacement for the cash flow that the Town would have received from the in- demnity fund under the original agreement. The Town will not, however, receive the remaining balance, if any, in the indemnity' fund as in the original agreement. * Upon the ultimate sale of the hotel parcel, the Town and Homart will share equally any amount in excess of $4 million. It is estimated that this might bring about another $250,000 to the Town. Homart is proceeding to clear the remaining State and Municipal permit hurdles based on this Agreement, aiming at Board approval in May and closing in June. Stay tuned! ARTICLE 2. The following report was presented by Donald C. Allen of the Finance Committee and accepted as a Report of Progress: FINANCE COMMITTEE REPORT TO TOWN MEETING MONDAY, APRIL 10, 1989 The Finance Committee has completed its review of the Fiscal 1990 Budget and Warrant. This budget was extremely difficult to review and to bring into balance due to the short review period and the uncertain revenue picture. Major adjustments in revenue estimates were received as late as March 30th. Each time these estimates changed, the budgets of most departments had to be adjusted to reflect the anticipated reduc- tions or increases in revenue. This involved hasty adjustments to those budgets. Adjustments that were not always made with careful planning that good budgeting requires. The Town Charter requires that the Town Manager present his budget and budget message to the Finance Committee four months before the start of the fiscal year. That works out to March 1. The Finance Committee then must have a report of its recommenda- tions distributed to the Town Meeting members fourteen (14) days before action on the. budget article. Since Town Meeting starts on April 10th, the Finance Committee report must be in the mail by March 27th. That.means the report has to be in-the printer's hands around the 23rd. Based on those requirements, the Finance 339 Adjourned Annual Town Meeting April 10, 1989 Committee budget review process allows about three weeks to review a $40,000,000.00 (forty million) dollar budget. This year due to extraordinary events, the budget was not presented to Finance Committee until March 9th, and then was changed and resubmitted on March 13th. Fincom was then left with 7 (seven) working days to review the budget, which on March 13th, by the way, was still out of balance over $100,000.00 (one hundred thousand) dollars. The Fincom opted to review the budget in depth as we always do, rather than skim through it. That decision meant that our report would be late for the opening ses- sion of Town Meeting. We regret the tardiness of the report of Fincom recommendations, but we did the best we could under the circumstances. The budget to be presented represents a 6.2 per cent increase over the Fiscal 1989 budget excluding the enterprise accounts, sewer, water, and municipal electric utility. A brief summary of the major changes on the revenue side of that budget follows: Real Estate Tax Increase $725,000 + 40 Local Receipts Increase 345,000 +16% Sale of R/E Fund Increase 1,085,000 Free Cash Decrease (600,000) -480 Debt Increase 286,000 + 9% The Real Estate tax went up $725,000.00 - 4 per cent Local Receipts - $345,000.00 - 16 per cent (And if the Police are more active, those will go up more.) Sale of Real Estate funds went up $1,085,000.00. (We used none of those last year so it's any per cent that you want to add to it.) Free Cash - was a decrease of $600,000.00; 48 per cent decrease over last year. Debt went up $286,000.00 - 9 per cent increase, mostly be- cause of the new D.P.W. Garage. The total increase in revenue is expected to be $2,100,000.00 or 6.2 per cent over 1989. We've assumed that there will be no increase in state aid. The major changes in the expenditure side of the budget for 1990 compared to the 1989 budget were as follows: Total wages went up $1,343,000.00 - 7.5 per cent Pension cost went up $117,000.00 - 7.5 per cent Medical Insurance went up $480,000.00 - 32 per cent Debt payment, $342,000.00 - 2.9 per cent School expenses, $135,000.00 - 5.2 per cent Municipal expenses decreased $248,000.00 - 8.5 per cent decrease General Insurance decreased $33,000.00 - 10 per cent decrease Trash went up 10 per cent for $85,000.00 Since the balanced budget, the total increase in expendi- tures over 1989 is also $2.1 million or 6.2 percent. Well, the recommended budget attempts to maintain existing levels of serv- ice, the Town Meeting member should take note of several actions taken in this budget. which were necessary in order to achieve a balanced budget. 340 Adjourned Annual Town Meeting April 10, 1989 Many capital projects were simply deferred until next year or later such as paving the Library parking lot, replacing major pieces of D.P.W. equipment, and the purchase of pickup trucks., replacing Police Department firearms, and reduced maintenance budgets in the schools. . What is accomplished by deferring these items is basically to increase next years deficit by about $300,000.00 or more and to increase some of your current maintenance costs. Some person- nel cost cuts have also occurred within these budgets. The Police will lose two officers in order to stay within that 5 1/2 percent salary guideline. D. P.W. will not immediately replace a Draftsman. Town Clerk's office already operates with fewer clerks than were employed several years ago. There are also many smaller reductions through dues, subscriptions, travel, the whole plethora. All of this indicates to the Finance Committee that there will not be enough revenue in the future to fund all of the serv- ices expected by the residents of Reading. If we do not find ad- ditional sources of revenue, we'll need to restructure our Town departments and school system in order to fit within the increas- ingly limited resources available. The Town's revenue plans have been dealt several severe blows recently. The Bear Hill area will be sold for less than originally anticipated. Embassy Suites has backed out of the purchase of a portion of the landfill. This will cost the Town the immediate sales price plus the expected increase in real es- tate taxes plus the loss of the expected room tax for tax revenue, plus the lost of interest income on the sales price. We're hopeful that this is just a delay and that another purchaser will be found. We did retain. Embassy Suites $100,000.00 (One hundred thousand) dollar deposit by the way and that went into the Real Estate Fund. The net return to the Town from the Reading Municipal Light Department dropped by over $50,000.00 (fifty=thousand) dollars. It's hoped that this is a temporary condition and has been brought to the attention of the Light Department. The reduction in the growth of state aid has received much publicity and within this budget. The Town of Reading is in far better financial condition than most of the surrounding Towns. Those Towns are experiencing layoffs of teachers, firefighters, police, and other Town employees to a far larger degree than Reading. Reading has al- ways been a fiscally conservative town. We've not embarked on major capital projects without a very thorough study and usually arrive at a final cost of a project that the Town can afford. The recent adventures in Town Hall reconstruction and Fire Sta- tion construction are examples of this. Reading has also taken the difficult position that the Town should sell off surplus unneeded real estate and use the resulting revenue to fund capi- tal projects, earn much needed interest, and to expand the tax base. That policy will contribute both directly and indirectly well over $1,000,000.00 to the revenues of this budget. This budget is based on all of our revenue sources being used to the largest extent possible within responsible fiscal limits. We will have used all of the available real estate tax levy, all of the state aid, all of our local receipts, all of the sale of real estate funds we can, all of the free cash and even all of our responsible borrowing capacity. Finance committee believes that the 6.2 per cent increase in the operating budget is a reasonable increase under the circumstances. As you can see, a portion of that amount is not truly under the control of the Town. If Town Meeting decides for any reason that one area of the budget requires more than the Finance Committee has recommended, then another area will need to live with less. There is no op- Project # FIN-1 FIN-2 HS-1 PS-F-4 PS-F-5 PS-F-6 PS-F-7 PS-F-8 PS-P-2 PS-P-4 PS-P-6 PW-B-1 PW-B-2 ?W-B-3 )W-B-5 i W-B-6 4-B-7 PW-C-3 PW-C-6 PW-C-7 PW-E-1 PW-E-4 PW-E-5 PW-E-6 PW-E-7 PW-E-8 TOWN OF READING MASSACHUSETTS FIVE YEAR CAPITAL IMPROVEMENT PROGRAM Fiscal Years 1990 through 1994 (cost in 0001x) Cost by year and source of funding Project Description FY90 FY91 FY92 FY93 FY94 Data Proc Equip Enhance 14.335 8.45S 1.5A Replace Data Proc Equip 6.57S 15S 15S 20S 20S Replace Elder Serv. Van 25S Quint Truck 400D Replace Bucket Truck 35S Replace Pickup Truck 15S Replace Pumper 160D - Replace Ambulance 75D Addition/Remodel Station Signals - Square 150G 150G Purchase Firearms 19.55 Asbestos Removal Reconstruct Lib Park Lot 45D Renovation - T. Hall 1,500D Roof -,Library 37G Elder Serv.-Center 450G General Bld Improve 10S 15S 15S Cemetery Development 25C 75C Replace Backhoe Replace Mower 6C Replace Backhoe/loader 45A Replace Dump Trucks 47S 94A 47A Replace Pickup Truck 24S 12A Replace Eng. Van 14S Replcmt. Other Equip. 19S 50A 200A Replace Sweeper 58A 75G 75D 15S 75C 20C 15S 75C 250A 300A TOWN OF READING MASSACHUSETTS FIVE YEAR CAPITAL IMPROVEMENT PROGRAM. Fiscal Years 1990 through 1994 (cost in 000'x) s , Cost by year and s ource of funding Project-# Project Description FY90 FY91 FY92 FY93 FY94 PW-P-1 Renovation of Pool 120D PW-P-2 Park Development 35G 50D 50D PW-R-1 Street Overlay 75A 75A 75A 75A 75A PW-R-2 St.Reconstruction 150D 300D 100D 300D 100D PW-R-3 Drainage Improvements 210D 200D 200D PW-R-4 St. Acceptances 13.6B 15B 15B 15B 15B PW-R-5 Walkers Brook Drive Improvements 398. 066G - - - - 161. 934B - - - - PW-R-6 Chapt. 90 Imprvmts. 60G 60G 60G 60G 60G PW-R-7 Curb/Sidewalk Const 25D 75D 100D 100D PW-R-8 East Side Neigh. Imp. 1000 PW-S-1 Inflow/Infiltration PW-S-2 Main Reconstruction 450G 50E PW-S-3 Replace Vehicle 12E `W-W-1 Water Meters 107E 107G 1 PW-W-2 Water Treat/Storage 500E PW-W-3 Vehicle 26E PW-W-4 New Well Development 35E 100E - SD-1 Computer/Wd Proc Equip 35A 35A 35A 35A 35A SD-2 Roof Replacement 262D 46A 160D SD-3 Space Remodelling-Elem 30A 25A 25A 25A SD-4 Chp 504-Lifts-Toilet Rem 28A 15A SD-5 Central Office Rel, 200D SD-6 Energy Related Proj 15A 15A 15A 15A 15A SD-7 Vehicle Replacement 15A 12A 12A 15A 15A SD-8 Floor Tile Replacement 15A 15A 15A 15A 15A SD-9 Install Suspnded Ceiling 25A SD-10 Window Replacement 175D 30A SD-11 Refurbish Kitchen 50A SD-12 Rplce Clsrm/Cafe Furn. 15A 15A 18A 18A 20A SD-13 Gate/Zone Vlve Replcmt 15A 10A 10A 10A 10A SD-14 Repointing Brick Work 10A 10A SD-15 Oil Tank Replacement 10A 100D 100D 100D SD-16 Asbestos Abatement 195D. 95D 14A 75D 75D SD-17 Space Rmodel-Elem.School 1000D 1000D 1000D I Aevised 4- 11-89 I i SUMMARY OF CAPITAL IMPROVEMENT PROGRAM BY YEAR BY SOURCE OF FUNDS (Cost in.000's) FY90 FY91 FY92 FY93 FY94 A 263 471 528.5 538 510 B 175.534 15 15 15 15 C 25 81 95 75 D 3255 2397 1860 810 550 E 180 150 500 G 887.066 1110 .60 60 135 S 134.90 132.95 30 35 35 4895.50 4300.95 3074.5 1553 1320 SOURCE OF FUNDING - A Annual Appropriation B Betterment C Sale of Cemetery Lots D Debt to be authorized E Enterprise Appropriation G Grant or outside funding S Sale of Real Estate I Revised 4-11-89 V 341 tion to increase any budget from the revenue side. We spent it all. If an area of budget is increased, we would ask that the member requesting the increase indicate which area of the budget could be decreased. Limited resources have forced difficult choices this year and will force even more difficult choices in future years. The Finance Committee has been working with the Selectmen to develop a "Five Year Plan," which will aid in preparing to make some of those difficult decisions. We had a fairly comprehensive plan ready to present to this Town Meeting. However, so many basic as- sumptions of that plan changed in March. For example, the landfill sale not occurring--that we want to meet with the Selectmen and School Committee and rework the whole plan. Hope- fully, we'll all have a report for the Fall Town Meeting. For the second year in a row, we have included our financial forecast for the next five years. It's within the report you will receive. Town Meeting has come to expect that their Finance Committee recommendations represent a financial plan that can be funded and has been arrived at in a fair and equitable manner. We believe this budget as presented is a balanced and fair budget. Finance Committee would like to thank all the employees and volunteers of Town government for their cooperation and assis- tance. This year was a difficult year for everyone involved, and all parties that the Finance Committee dealt with were graceful under sometimes extreme pressure. Thank you. The Reading Finance Committee: Donald Allen, Chairman Brian McMenamin, Vice Chairman Willard Burditt Charles Catalfamo Paul Devlin Elizabeth Greene Randolph Harrison Jr. Deane Haskell Jeffrey Shaw ARTICLE 2. John R. Rivers moved to adjourn Annual Meeting to Monday, April 24, 1989. This motion was voted in the negative. ARTICLE 2. On motion of Barry J. Mitchell, it was voted to accept Reports of Progress. ARTICLE 2. On motion of Russell T. Graham, it was voted to lay Article 2 on the table. ARTICLE 3. Frederick Van Magness, Town Meeting Member, Precinct 8, moved that Article 26 (FY90 Budget) be presented to Town Meeting in detail and not by omnibus process. Said discus- sion to include explanation of increases and decreases in Town services, along with details supporting major deferrals to FY91. 68 voted in the affirmative 69 voted in the negative This motion was voted in the neaative. ARTICLE 3. On motion of Russell T. Graham, it was voted to lay Article 3 on the table. ARTICLE 4. On motion of Mary S. Ziegler, as amended by John W. Price, it was voted that the Town adopt the attached Capital Improvement Program as presented, as provided for in Section 7-7 of the Reading Home Rule Charter. ARTICLE 5. On motion of Elizabeth W. Klepeis, it was voted that the Town authorize the Town Treasurer-Collector, with the 342 Adjourned Annual Town Meeting April 10, 1989 approval of the Board of Selectmen, to borrow money from time to time in anticipation of the revenue of the financial year begin- ning July 1, 1989, in accordance with the provision of the General Laws, Chapter 44, Section 4, and to issue a note or notes therefor, payable within one year and to renew any note or notes as may be given for a period of less than one year, in accordance with the General Laws, Chapter 44, Section 17. ARTICLE 6. On motion of Elizabeth W. Klepeis, it was voted that the Town indefinitely postpone the subject matter of Article 6. ARTICLE 7. On motion of Barbara B. Philbrick, as amended by Frederick Van Magness and William C. Brown, it was voted that the Town transfer the care, custody, management and control of the following described land, with the building thereon, or portions thereof, which is commonly known as the Pearl Street School from the Reading School Department to the Board of Selectmen of the Town of Reading for any other municipal purpose including the possible sale or lease thereof: The land shown on Town of Reading Board of Assessors Revised January 1, 1987, Plat 105, as Lot 10 consisting of 4.8395 acres. 135 voted in the affirmative 1 voted in the negative 2/3 vote required ARTICLE 8. On motion of John W. Price, it was voted to in- definitely postpone Article 8. 64 voted in the affirmative 63 voted in the negative ARTICLE 9. On motion of John H. Russell, it was voted that the Town accept the provisions of General Laws Chapter 64G, Section 3A which authorizes the Town to impose a local excise tax upon the transfer of occupancy of a room or rooms in a bed and breakfast establishment, hotel, lodging house, or motel located within the Town; and to establish the local excise tax rate at four (4%) of the total amount of rent for each such occupancy. On motion of Russell T. Graham, it was voted that this meet- ing stand adjourned to meet at 7:30 P.M. on Thursday, April 13, 1989, at Reading Memorial High School. Meeting adjourned at 10:48 P.M. 107 Town Meeting Members were present. A true copy. Attest: Doris M. Fantasia Town Clerk ADJOURNED ANNUAL TOWN MEETING Reading Memorial High School April 13, 1989 The meeting was called to order by the Moderator, Paul C. Dustin, at 7:55 P.M., there being a quorum present. The Invocation was given by Reverend Francis O'Hare of St. Athanasius Church, followed by the Pledge of Allegiance to the Flag.