HomeMy WebLinkAbout2010-03-16 Board of Selectmen Packet~o y oFReq~y Town o Reading
16 Lowell Street
Reading, MA 01867-2685
39;lHCORQ04
FAX: (781) 942-9071
Email: townmanager@ci.reading.ma.us
Website: www. readingma.gov
MEMORANDUM
TO: Board of Selectmen
FROM: Peter I. Hechenbleikner
DATE: March 12, 2010
TOWN MANAGER
(781) 942-9043
RE: March 16, 2010 Agenda
2a) The Advisory Committee on the Cities for Climate Protection has been putting together a
lot of work on vehicle idling, and will ask the Board of Selectmen to approve this
declaration. Members of the Advisory Committee will be present.
4a) The Town Accountant's term expires on April 1, 2010, and I would strongly recommend
reappointment of Gail LaPointe for one year to that position.
4b) You have received the Audit Report and it is also included electronically in your packet.
Please bring your Audit Report with you. The Auditor will be present.
4c) Following. the Auditor's Report the Town Accountant will fill the Selectmen in on any
happenings with regard to her office.
4d) At the Board's request, National Grid will come in and make a presentation on gas
service in Reading.
4e) Attached is the Franklin and Main Street Study.
Attached is the suggested routes to school improvements.
Attached is a one page report fiom the Town Engineer regarding bike racks that we've
already put in place and future bike racks that we would like to install.
We will give you an updated on the curbing and sidewalk work proposed with 2010
funds and with 2011 funds.
The Parking, Traffic and Transportation Task Force reviewed the speed limits on Birch
Meadow Drive following the discussion with the Board of Selectmen on the school zone.
The PTTTF is in agreement that we should leave the speed zone signs as they are,
remove the flashing school zone signs on Birch Meadow Drive, and enforce accordingly.
4f) The Change of Manager form was received. This requires a public hearing, but no
notice. Bob Morelli, the designated Manager has been the club Manager for a number of
years.
PIH/ps
Page 1 of 1
Hechenbleikner, Peter
From: Ellen Doucette [ecdoucette@brackettlucas.com]
Sent: Wednesday, March 03, 2010 9:51 AM
To: Hechenbleikner, Peter
Subject: Compliance Certificate
Attachments: Compliance certificate - 6 Sumner Cheney Place.doc
Peter,
This is the form that the Selectmen, as executives of the town for purposes of 40B regulations, must sign that is
recorded to alter the unit from an affordable to a market rate.
You can have the Selectmen sign at your convenience and I'll hold onto it until closing.
Ellen
Ellen Callahan Doucette, Esq.
Brackett & Lucas
19 Cedar Street
Worcester, MA 01609
(508) 799-9739
(508) 799-9799 Facsimile
3/3/2010
Compliance Certificate
RE: 6 Sumner Cheney Place, Reading, MA
Pursuant to Section 1(b) of the Deed Rider that was made part of the Deed for
said property and recorded on at the Middlesex South Registry of Deeds, Book
44850, Page 398, the Town of Reading acknowledges the receipt of the funds in
excess of the Maximum Resale Price from the sale of this property. These fitnds
will be deposited into an affordable housing fund to be used by the town to
support other affordable housing within the town.
This property was conveyed to a third party at fair market value in accordance
with Section 1(b) of said Deed Rider. This certificate may be relied upon as
conclusive evidence that the rights, restrictions, agreements and covenants set
forth in the above mentioned Deed Rider are null in void.
Executed under seal on the Ih day of )2010.
Town of Reading by its
Board of Selectmen
Ben Tafoya, Chair
James E. Bonazoli, Vice-Chair
Camille W. Anthony, Secretary Stephen Goldy
Richard W. Schubert
COMMONWEALTH OF MASSACHUSETTS
Middlesex, ss.
On this day of 2010, before me, the undersigned notary
public, personally appeared , proved to me through satisfactory
evidence of identification, which is that he is known to me for a period of time to
establish beyond doubt that he has the identity claimed, to be the person whose
name is signed on this, and acknowledged to me that he signed it voluntarily for
its stated purpose, as the
Notary Public
My commission expires:
1 C,.Z
DECLARATION
IDLE FREE READING
WHEREAS: The Town of Reading, through participation in the Cities for Climate Protection Campaign, has
identified the problem of motor vehicle emissions as a high priority for the Town to address; and
WHEREAS: The Town of Reading has endorsed the Reading Advisory Committee on Cities for Climate
Protection Action Plan, a plan developed under the Cities for Climate Protection Program to
address factors contributing to climate change; and
WHEREAS: Emissions from idling vehicles contribute significantly to air pollution, and to increased rates of
respiratory diseases which adversely affect Reading citizens, especially children, seniors and
people with weakened immune systems; and
WHEREAS: Idling a modem vehicle for longer than 10 seconds consumes more fuel than restarting that vehicle
resulting in excessive emissions, wasted fuel and possible damage to the vehicle's engine; and
WHEREAS: The Town of Reading has implemented a no-idling policy pertaining to Reading Municipal Fleet
vehicles including the Public Works Department, Police and Fire Departments and the Reading
Municipal Light Department; and
WHEREAS: The Reading Public School Department has already moved. to implement a no-idling campaign
and signage for parents dropping off and picking up children, buses, delivery vehicles and
employees in and around the schools; and
WHEREAS: . It is in the public interest that Reading motorists reduce fuel consumption and resulting vehicle
emissions, and that the Town of Reading take appropriate measures to improve the health of
Town residents and to protect the environment.
NOW, THEREFORE, BE IT DECLARED on this 16th day of March 2010 that Reading is an idle free town
with the intent that no motorist should idle their vehicle except in the following instances:
(1) Motors used to run refrigeration units may be left idling to permit uninterrupted refrigeration.
(2) A motor vehicle may be left idling if necessary for the repair of that vehicle.
(3) This provision shall not apply to motor vehicles that must be kept idling in order to install,
maintain or repair equipment or infrastructure.
(4) This provision shall not apply in any situation in which the health or safety of a driver or
passenger requires the idling of the vehicle.
AND BE IT RESOLVED that the Town of Reading, through its various Departments and Officials as well as the
Cities for Climate Protection Campaign, will continue to educate Reading citizens and visitors regarding the
dangers to the environment and Town residents caused by unnecessary idling of motor vehicles.
BOARD OF SELECTMEN
Ben Tafoya, Chairman
Stephen A. Goldy
James E. Bonazoli, Vice Chairman Camille W. Anthony, Secretary
Richard W. Schubert
a~'
TABLE OF CONTENTS
PAGE
INTRODUCTORY LETTER 1
INTRODUCTION 3
CURRENT YEAR RECOMMENDATIONS:
1. Update Tailings Account 3
2. Strengthen Controls Over Town Clerk Receipts 3
3. Strengthen Controls Over Library Receipts 5
y D~ .
MELANSON MEATH & COMPANY, PC
CERTIFIED PUBLIC ACCOUNTANTS
MANAGEMENT ADVISORS
I o New England Business Center Drive a Suite 112
Andover, MA o 18 t o- i o96
(978) 749-0005 c Fax (978) 749-ooo6
. www.melansonheath.com
To the Board of Selectmen
Town of Reading, Massachusetts
In planning and performing our audit of the financial statements of the Town of
Reading, Massachusetts as of and for the year ended June 30, 2009, in accordance
with auditing standards generally accepted in the United States of America; we
considered the Town of Reading's internal accounting control over financial reporting
(internal control) as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Town's internal control. Accord-
ingly, we do not express an opinion on the effectiveness of the Town's internal
control.
A control deficiency exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned func-
tions, to prevent or detect misstatements on a timely basis. A significant deficiency
is a control deficiency, or combination of control deficiencies, that adversely affects
the. entity's ability to initiate, authorize, record, process, or report financial data relia-
bly in accordance with generally accepted accounting principles such that there is
more than a remote likelihood that a misstatement of the entity's financial statements
that is more than inconsequential will not be prevented or detected by the entity's
internal control.
A material weakness is a significant deficiency, or combination of significant defi-
ciencies, that results in more than a remote likelihood that a material misstatement
of the financial statements will not be prevented or detected by the entity's internal
control. Our consideration of internal control was for the limited purpose described
in the first paragraph and would not necessarily identify all deficiencies in internal
control that might be significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control that we consider to be material weak-
nesses, as defined above.
Ll 3
Additional Offices:
Greenfield, MA o Ellsworth, ME o Nashua, NH c Manchester, NH
The Town's written response to the recommendations identified from our audit has
not been subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on them.
This communication is intended solely for the information and use of management,
Board of Selectmen, and others within the organization, and is not intended to be
and should not be used by anyone other than these specified parties.
After you have had an opportunity to consider our comments and recommenda-
tions, we would be pleased to discuss them with you.
Andover, Massachusetts
January 27, 2010
2
INTRODUCTION:
We would like to commend the Town for implementing our prior year.recommendations
during fiscal year 2009. In addition to.the standard internal control testing, we reviewed
the internal controls for the Town Clerk's office, Athletic Department, Food Services,
and the Library.'
CURRENT YEAR RECOMMENDATIONS:
1. Update Tailings Account
The Town's outstanding check lists include outdated (stale) checks totaling
$ 40,292 that are over a year old. Although the dollar value of these stale checks
is not material, including them in each month's bank reconciliation increases the
time required to perform the reconciliation.
We recommend the Town consider updating the tailings account by adding the
total of stale checks back to the general ledger cash and the tailings liability
account. At the same time, the outstanding checks would be removed from the
bank account reconciliation. If these checks ever clear, the Town would reduce
its general ledger cash and related tailings liability account. This would reduce
the time required to perform the bank account reconciliation and would more
accurately reflect the Town's available cash balance.
Management's Response:
The Town has a tailings account. Letters have been sent to owners of uncashed
checks dated 2004 thru June. 30, 2009. Several have responded and checks
were reissued as appropriate. We have not yet made a formal request for the
bank to move the funds of the remaining unclaimed checks. That will be done by
May of 2010.
2. Strengthen Controls Over Town Clerk Receipts
The Town Clerk's Office is responsible for accepting receipts for various licenses
and certificates, that total approximately $ 80,000 annually. In our review of
3
departmental procedures, we found that the Department does not maintain a
receipt log nor are the Clerk's records reconciled with related general ledger
accounts.
We also noted that while fish and wildlife licenses are prenumbered and
accounted for in compliance with State-mandated procedures, most of the
other licenses and permits are not prenumbered. As a result, there is no
practical way to verify that all documents issued have been accounted for.
Furthermore, we noted that the Department retains receipt records for only.
one year.
This combination of factors increases the risk that errors or irregularities could
exist and go undetected. In order to improve internal control and accountability
within the Department, we recommend the following:
® A receipt log should be established which would, at a minimum, detail the
following information: payee, amount received, date received, type of license
issued, and designation of payment (check or cash).
® The receipt log should be. reconciled to monies collected on a daily basis and
be subtotaled each time a turnover is made to the Treasurer.
® Prenumbered duplicate receipts should be issued to all payees and should
identify whether cash or check was received. The receipts should then be
reconciled to the receipt log and cash register tapes.
® The receipt log should be reconciled with general ledger revenue accounts on
a monthly basis.
Departmental records should be maintained for at least three years or in
accordance with Massachusetts General Laws, whichever is greater.
Implementation of these recommendations will improve overall controls over the
receipts, and should reduce the risk of errors or irregularities occurring and going
undetected.
4
Management's Response:
The Town Clerk's Office is installing a cash register that is directly connected
to the financial software. Payments will be entered individually as the customers
pay at the counter and sequential receipts will be printed and given to each
customer. Receipts received through the mail may be processed in a separate
batch, but will be entered individually in order to maintain the required detail. A
Daily Payments Proof report will be printed for each batch. The daily Payments
Proof Report contains all the information described by the auditors as a log book.
By entering the data directly into the Financial Software System, all amounts can
be traced through the General Ledger. Money will be turned over to the treas-
urer daily, and daily Payments Proof Report will be saved for 3 years on a fiscal
year basis.
3. Strengthen'Gontrols Over Library Receipts
The Library department collects various fees and donations related to the Library,
which total approximately $ 30,000 annually. During our review of controls over
Library cash receipts, we noted that receipt logs are not maintained, checks are
not immediately endorsed "for deposit only", nor are the records reconciled with
related general ledger accounts.
This combination of factors increases the risk that errors or irregularities could
exist and go undetected. In order to improve internal control and accountability
within the Department, we recommend the following:
• A receipt log should be established which would, at a minimum, detail the
following information: payee, amount received, date received, and designa-
tion of payment (check or cash).
® The receipt log should be reconciled to monies collected on a daily basis and
be subtotaled. each time a turnover.is made to the Treasurer.
® Prenumbered duplicate receipts should be issued to all payees and should
identify whether cash or check was received. The receipts should then be
reconciled to the receipt log.
5
1~ _'P~ I
® The receipt log should be reconciled with general ledger revenue accounts
on a monthly basis.
Departmental records should be maintained for at least three years or in
accordance with Massachusetts General Laws, whichever is greater.
Implementation of these recommendations will improve overall controls over the
receipts, and should reduce the risk of errors or irregularities occurring and going
undetected.
Management's Response:
The Library takes in less than $ 25 per day in cash and checks at the circulation
desk. Currently, a receipt is given to patrons for lost materials and will be copied
and turned over to the administrative clerk with the cash and checks deposited.
The efforts and cost that would have to be made to give pre-numbered receipts
for cash or checks received for photocopying outweigh the internal control bene-
fits for our town
Large gifts and donations are always handled carefully, processed immediately,
and deposited on receipt into the library safe. Checks received for donations
and receipts received in the mail will be entered individually into the Financial
Software in order to maintain detail at the level recommended by the auditors.
A Payments Proof report will be printed for each batch. The Payments Proof
Report contains all the information described by the auditors as a log book. By.
entering the data directly into the Financial Software System, all amounts can be
traced through to the General Ledger. The Payments Proof Report will be saved
for 3 years on a fiscal year basis. Cash and Checks will be kept in a safe every
evening, and will be turned over to the treasurer not less than once weekly.
6
4 . ~g
TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Governmental Funds:
Balance Sheet
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities in the Statement
of Net Assets
Statement of Revenues, Expenditures, and Changes
in Fund Balances
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
Statement of Revenues and Other Sources, and Expenditures
and Other Uses - Budget and Actual - General Fund
Proprietary Funds:
Statement of Net Assets
Statement of Revenues, Expenses, and Changes in Fund
Net Assets
Statement of Cash Flows
Fiduciary Funds:
Statement of Fiduciary Net Assets
Statement of Changes in Fiduciary Net Assets
Notes to Financial Statements
Electric Light Plant Notes to the Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress
PAGE
1
3
12
13
14
15
16
17
18
19
20
21
22
23
24
48
62
Lq -k . 'I
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet - Nonmajor Governmental Funds 64
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds 68
Combining Schedule of Net Assets - Nonmajor Proprietary Funds 71
Combining Schedule of Revenues, Expenses and Changes
in Fund Net Assets - Nonmajor Proprietary Funds 72
Combining Schedule of Cash Flows - Nonmajor Proprietary Funds 73
MELANSON HEATH & COMPANY, PC
CERTIFIED PUBLIC A.ccoUNTANTS
MANAGEMENT ADVISORS
ro New England Business Center Drive o Suite r 12
Andover, MA o 18 r o- r o96
(978) 7490005 ® Fax (978) 749-ooo6
www. melansonheath. coin
INDEPENDENT AUDITORS' REPORT
To the Board of Selectmen
Town of Reading, Massachusetts
We have audited the accompanying financial statements of the governmental activi-
ties, the business-type activities, each major fund, and the aggregate remaining fund
information of the Town of Reading, Massachusetts, as of and for the year ended
June 30, 2009, which collectively comprises the Town's basic financial statements
as listed in the table of contents. These financial statements are the responsibility of
the Town of Reading's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted
in the. United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all mate-
rial respects, the respective financial position of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund infor-
mation of the Town of Reading as of June 30, 2009, and the respective changes
in financial position and cash flows, where applicable, thereof and the respective
budgetary comparison for the General Fund for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
The management's discussion and analysis, appearing on the following pages,
and the supplementary information, appearing on page 62, are not a required
part of the basic financial statements but are supplementary information required
by accounting principles generally accepted in the United States of America. We ~v.
Additional Offices:
Greenfield, MA e Ellsworth, ME s Nashua, NH o Manchester, NH
have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information
and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the Town of Reading's basic financial
statements. The combining financial statements as listed in the accompanying
table of contents are presented for purposes of additional analysis and are not
a required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the, audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in relation
to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated January 27,2010 on our consideration of the Town's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial report-
ing and compliance and the results of that testing, and not to provide an opinion on
the internal control over financial reporting or on compliance. That report is an inte-
gral part of an audit performed in accordance with Government Auditing Standards
and should be considered in assessing the results of our audit.
P. C_.
Andover, Massachusetts
January 27, 2010
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Town of Reading we offer readers this narrative overview
and analysis of the financial activities of the Town of Reading for the fiscal year
ended June 30, 2009. Unless otherwise noted., all amounts reported in this
analysis are expressed in thousands.
A. OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the basic
financial statements. The basic financial statements are comprised of three
components: (1) government-wide financial statements, (2) fund financial state-
ments, and (3) notes to the financial statements. This report also contains
other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The government-wide financial state-
ments are designed to provide readers with a broad overview of our finances in
a manner similar to a private-sector business.
The statement of net assets presents information on all assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial
position is improving or deteriorating.
The statement of activities presents information showing how the government's
net assets changed during the most recent fiscal year. All changes in net assets
are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows
in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave).
Both of the government-wide financial statements distinguish functions that are
principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant
portion of their costs through user fees and charges (business-type activities).
The governmental activities include general government, public safety, educa-
tion, public works, health and human services, and culture and recreation. The
business-type activities include water supply and distribution, sewer disposal,
landfill, electricity, and storm water activities.
Fund financial statements. A fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for specific
activities or objectives. Fund accounting is used to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds can be '
3
4.
divided into three categories: governmental funds, proprietary funds and fiduci-
ary funds.
Governmental funds. Governmental funds are used to account for essentially
the same functions reported as governmental activities in the government-wide
financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating
a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-
wide financial statements, it is useful to compare the information presented for
governmental funds with similar information presented for governmental activities
in the government-wide financial statements. By doing so, readers may better
understand the long-term impact of the government's near-term financing deci-
sions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
An annual appropriated budget is adopted for the general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary funds. Proprietary funds are maintained as follows:
Enterprise funds are used to report the same functions presented as business-
type activities in the government-wide financial statements. Specifically, enter-
prise funds are used to account for water, sewer, landfill, and electricity opera-
tions.
Proprietary funds provide the same type of information as the business-type
activities reported in the government-wide financial statements, only in more
detail. The proprietary fund financial statements provide separate information
for the water, sewer, landfill, electricity, and storm water operations. Water and
electricity are considered to be major funds.
Fiduciary funds. Fiduciary funds are used to account for resources held for the
benefit of parties outside the government. Fiduciary funds are not reflected in the
government-wide financial statements because the resources of those funds are
not available to support the Town's own programs. The accounting used for
fiduciary funds is much like that used for proprietary funds.
Notes to financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and
fund financial statements.
4
Other information. In addition to the basic financial statements and accom-
panying notes, this report also presents certain required supplementary infor-
mation which is required to be disclosed by accounting principles generally
accepted in the United States of America.
B. FINANCIAL HIGHLIGHTS
® As of the close of the current fiscal year, the total of assets exceeded liabili-
ties by $ 210,850 (i.e., net assets), a change of $ (2,051) in comparison to the
prior year.
® As of the close of the current fiscal year, governmental funds reported com-
bined'ending fund balances of $ 25,468, a change of $ (4,136) in comparison
with the prior year.
® At the end of the current fiscal year, unreserved fund balance for the general
fund was $ 6,486, a change of $ 35 in comparison with the prior year.
® Total bonds payable at the close of the current fiscal year was $ 60,853, a
change of $ (8,374) in comparison to the prior year.
C. GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following is a summary of condensed government-wide financial data for the
current and prior fiscal years.
Current and other assets
Capital assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net
Restricted
Unrestricted
Total net assets
Governmental
Business-Type
Activities
Activities
Total
2009
2008
2009
2008
2009
2008
469 $
$ 32
36,683
$ 41,525 $
47,314
$ 73,994 $
83,997
,
728
132
134,684
86,482
82,947
219,210
217,631
,
165,197
171,367
128,007
130,261
293,204
301,628
755
50
55,239
17,890,
18,687
68,645
73,926
,
6,506
6,485
7,203
8,316
13,709
14,801
57,261
61,724
25,093
27,003
82,354
88,727
88,095
82,245
.72,977
68,369
13,376
12,566
4,404
2,938
6,465
14,832
25,533
31,951
$ 107,936
$ 109,643
$ 102,914
$ 103,258
161,072 150,614
17,780 15,504
31,998 46,783
$ 210,850 $ 212,901
41 . ) ~ "
5
CHANGES IN NET ASSETS
Governmental
Business Type
Activities
Activities
Total
2009
2008
2009
2008
2009
2008
Revendes:
Program revenues:
Charges for services
$ 5,762 $
5,211 $
100,990
$ 95,738
$ 106,752 $
100,949
Operating grants and
contributions
20,321
19,710
3,057
1,464
23,378
21,174
Capital grants and
contributions
788
765
178
516
966
1,281
General revenues:
Property taxes
48,917
47,398
-
-
48,917
47,398
Excises
2,659
2,897
-
-
2,659
2,897
Penalties and interest and
493
693
other taxes
493
693
-
-
Grants and contributions
not restricted to specific
675
4
958 (a)
11
-
-
4,675
11,958
programs
Investment income
1
1,143
,
1,821
442
761
1,585
2,582
Other
792
33
410
-
1,202
33
Total revenues
85,550
90,486
105,077
98,479
190,627
188,965
Expenses:
General government
4,737
3,635
-
-
4,737
3,635
Public safety
10,146
9,792
-
-
10,146
9,792
Education
59,911
54,485
-
-
59,911
54,485
Public works
9,261
8,304
-
-
9,261
8,304
Human services
1,080
681
-
-
-
1,080
926
1
681
910
1
Culture and recreation
1,926
1,910
-
-
,
2
054
,
422
2
Interest on long-term debt
2,054
2,422
-
-
,
012
1
,
1
001
Intergovernmental
1,012
1,001
-
-
624
92
84
673
,
92,624
,
84,673
Electric
Water
-
-
-
,
5,451
,
5,367
5,451
5,367
Other
-
-
4,476
4,981
4,476
4,981
Total expenses
90,127
82,230
102,551
95,021
192,678
177,251
Excess of revenues over
577)
(4
256
8
2,526
3,458
(2,051)
11,714
expenses
,
,
Permanent fund contributions
-
91
-
-
-
91
Transfers in (out)
2,870
2,073
2,870
2,073
-
-
Change in net assets
(1,707)
10,420
(344)
1,385
(2,051)
11,805
Net assets - beginning of
643
109
99,223
103,258
101,873
212,901
201,096
year
,
Net assets - end of year
$ 107,936 $
109,643
$ 102,914
$ 103,258
$ 210,850 $
212,901
(a) 2008 Includes MSBA grants
of $7110
As noted earlier, net assets may serve over time as "a useful indicator of a
government's financial position. At the close of the most recent fiscal. year,
total net assets were $ 210,850, a change of $ (2,051) from the prior year.
The largest portion of net assets $ 161,072 reflects our investment in capital
assets (e.g., land, buildings, machinery, and equipment), less any related debt
used to acquire those assets that is still outstanding. These capital assets are
used to provide services to citizens; consequently, these assets are not available . 4 6 ~k
for future spending. Although the investment in capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves cannot
be used to liquidate these liabilities.
An additional portion of net assets $ 17,780 represents resources that are
subject to external restrictions on how they may be used. The remaining balance
of unrestricted net assets $ 31,998 may be used to meet the government's
ongoing obligations to citizens and creditors.
Governmental activities. Governmental activities for the year resulted in a
change in net assets of $ (1,707). Key elements of this change are as follows:
General fund expenditures exceeding revenues
Special revenue and permanent fund
revenues exceeding expenditures
Current year revenue used for the acquisition
of capital assets
PILOT from RMLD
Debt service principal in excess of depreciation
expense
increase in OPEB liability
Other
Total
$ (7,144)
745
2,499
2',113
2,425
(2,454)
109
$ 1,707
Business-type activities. Business-type activities for the year resulted in a
change in. net assets of $ (344). Key elements of this change are as follows:
The electric operations had revenues of $ 95,154 and expenses and transfers
of $ 94,737, resulting in a change in net assets of $ 417.
The water operations had revenues of $ 4,839 and expenses and transfers of
$ 5,889, resulting in a change in net assets of $ (1,050).
The sewer operations had revenues of $ 4,701 and expenses and transfers of
$ 4,687, resulting in a change in net assets of $ 14.
The landfill operations did not report any revenues or expenditures.
The storm water management operations had revenues of $ 382 and
expenses of'$ 107, resulting in a change in net assets of $ 275.
7
t(~I& (9,
D. FINANCIAL ANALYSIS.OF THE GOVERNMENT'S FUNDS
As noted earlier, fund accounting is used to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of governmental funds is to provide infor-
mation on near-term inflows, outflows and balances of spendable resources
Such information is useful in assessing financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net.
resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined
ending fund balances of $ 25,468, a change of $ (4,136) in comparison with the
prior year. Key elements of this change are as follows:
General fund expenditures exceeding revenues
$ (7,144)
Special revenue and permanent fund
revenues exceeding expenditures
745
Capital project fund revenues and bond proceeds
expenditures exceeding
(607)
Pilot from RMLD
2,113
Enterprise fund indirect costs
784
Other
27
Total
$ 4,136
The general fund is the chief operating fund. At the end of the current fiscal year,
unreserved fund balance of the general fund was.$ 6,486, while total fund
balance was $ 10,299. As a measure of the general fund's liquidity, it may be
useful to compare both unreserved fund balance and total fund balance to total
fund expenditures. Unreserved fund balance represents 7.9 percent of total
general fund expenditures, while total fund balance represents 12.5 percent of
that same amount.
The fund balance of the general fund changed by $ (3,792) during the current
fiscal year. The majority of this change is due to the MSBA refunded debt
payment, which was made on July 1, 2008 from the debt refunding completed at
the end of the prior year., Key factors in this change are as follows:
Use of free cash and overlay surplus as a funding source $ (1,587)
Revenues in excess of budget 244
Expenditures less than budget 1,898
MSBA refunded debt paydown (4,362)
Other .15
Total $ (3,7921
The following table reflects the trend in all the components of the general fund's
fund balance:
General Fund Balances
Last Five Fiscal Years
Subsequent
As of
Reserved for
Year's
Stabilization
Debt
Total Fund
30-Jun
Encumbrances
Expenditures
Fund
Unreserved Service
Balance
2004
$ 641
$ 555
$ 704
$ 3,721 $ -
$ 5,621
2005
679
706
820
3,513 -
5,718
2006
881
662
851
4,221 -
6,615
2007
1,435
264
896
5,788 -
8,383
2008
1,597
227
1,454
6,451 4,362
14,091
2009
1,210
763
1,840
6,486 -
10,299
Proprietary funds. Proprietary funds provide the same type of information
found in the business-type activities reported in the government-wide financial
statements, but in more detail.
Net assets of the enterprise funds at the end of the year amounted to $ 102,914,
a change of $ (344) in comparison with the prior year. Factors concerning the
finances of proprietary funds have already been addressed in the entity-wide
discussion of business-type activities.
E. GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget resulted
in an overall change in appropriations of $ 499.
The budget and actual statement reflects an under collection of Intergovern-
mental revenue primarily resulting from State Aid (Chapter 70) reductions
implemented by the Commonwealth in fiscal year 2009. The Chapter 70
reductions were partially offset by an American Recovery and Reinvestment Act
(ARRA) grant which is reported in a separate major fund in accordance with the
transparency requirements of the Act. The general fund revenue shortfall is
offset by budgetary turn backs in education and employee benefits expenditures.
The turn backs result from the Town transferring cost to the ARRA major fund.
F. CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. Total investment in capital assets for governmental and business-
type activities at year end amounted to $ 219,210 (net of accumulated deprecia-
tion), a change of $ 1,579 from the prior year. This investment in capital assets
includes land, buildings and system, improvements, and machinery and equip-
ment.
9
Major capital asset events during the current fiscal year included the following:
Governmental additions:
• $ 899 in roadway improvements
$ 895 in various recreation improvements
• $ 836 in education additions
• $ 610 in general government additions
• $ 360 in public safety additions
Business-type additions:
$ 6,852 in electric improvements
$ 1,344 in water improvements
$ 283 in sewer improvements
Additional information on capital assets can be found in the footnotes to the
financial statements.
Long-term debt. At the end of the current fiscal year, total bonded debt out-
standing was $ 60,853, all of which was backed by the full faith and credit of the
government.
Additional information on capital assets and long-term debt can be found in the
footnotes to the financial statements.
G. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The adopted FY10 General Fund budget of $ 73,335 is a .3% decrease from
the prior year. In recognition of the poor general economic conditions, State
Revenue Aid and Local Receipts were anticipated to be much lower. We are
required to budget to the expected revenues which explain the decrease in our
budget. The FY10 budget is balanced. Federal Stimulus money of approxi-
mately $ 1,000 is replacing state aid. The estimated revenues include a further
decrease in State Aid of $ 326. Local Receipts are budgeted $ 710 lower. This
general fund budget includes an allocation from the unreserved fund balance of
$ 249. The tax levy for FY10 of $ 50,129 represents a 2.0% increase over the
prior year, and the FY10 tax rate is $.13.75 per thousand, compared to $ 13.21
in the prior year. Overall, property values declined 2.0% to $ 3,645,760.
10
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of
Reading's finances for all those with an interest in the government's finances.
Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to:
Town Accountant
Town Hall
16 Lowell Street
Reading, MA 01867
11
TOWN OF READING, MASSACHUSETTS
STATEMENT OF NET ASSETS
JUNE 30, 2009
ASSETS
Current:
Cash and short-term investments
Restricted cash
Investments
Receivables, net of allowance for uncollectibles:
Property taxes
Excises
User fees
Departmental and other
Intergovernmental
Prepaid assets
Unamortized discounts on bonds
Inventory
Other assets
Noncurrent:
Restricted investments
Investment in associated companies
Receivables, net of allowance for uncollectibles:
Property taxes
Deferred charges
Capital assets being depreciated, net
Capital assets not being depreciated
TOTAL ASSETS
LIABILITIES
Current:
Warrants payable
Accrued liabilities
Customer advances for construction
Customer deposits
Retainage payable
Other current liabilities
Current portion of long-term liabilities:
Bonds and loans payable
Accrued employee benefits
Unamortized premiums on notes and bonds
Noncurrent:
Bonds and loans payable, net of current portion
Accrued employee benefits
Unamortized premiums on notes and bonds
OPEB liability
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Restricted for.
Grants and other statutory restrictions
Permanent funds:
Nonexpendable
Expendable
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
$ 18,010,448
13,110,072
180,510
79,337
246,851
337,860
9,909
78,949
4,400,000
122,391
315,541
99,993
128,463,958
4,263,927
165,197,355
17,468
83,859,027
2,622,631
128,006,693
1,368,770
3,124,648
1,104,105
908,327
3,720,000
80,050
24,762
42,705,000
1,520,950
249,943
2,454,449
57,261,004
88,095,331
5,628,680
2,374,100
5,373,466
6,464,774
$ 107,935,351
Business-Type
Activities
$ 13,248,715
11,573,437
9,703,031
753,345
296
1,706,163
189
5,555,428
376,500
696,517
496,335
78,637
2,106,501
81,713
777
12,321,598
2,871,423
3,881
503,867
25,093,177
72,977,051
4,403,130
25,533,335
$ 102,913,516
See notes to financial statements. 12
Total
$ 31,259,163
11,573,437
13,110,072
180,510
79,337
9,703,031
246,851
337,860
753,345
10,205
1,706,163
79,138
4,400,000
122,391
315,541
117,461
212,322,985
6,886,558
293,204,048
6,924,198
3,501,148
696,517
496,335
1,104,105
986,964
5,826,501
161,763
25,539
55,026,598
4,392,373
253,824
2,958,316
82,354,181
161,072,382
10,031,810
2,374,100
5,373,466
31,998,109
$ 210,849,867/ 3r.
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TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF TOTAL GOVERNMENTAL FUND
BALANCES TO NET ASSETS OF GOVERNMENTAL
ACTIVITIES IN THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Total governmental fund balances
• Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
• Revenues are reported on the accrual basis of accounting
and are not deferred until collection.
• Governmental funds report the effect of long-term debt
issuance costs, premiums, and discounts when debt is first
issued, whereas these amounts are deferred and amortized
in the statement of activities.
• In the statement of activities, interest is accrued on outstanding
long-term debt, whereas in governmental funds interest is not
reported until due.
• Long-term liabilities, (bonds payable, accrued employee benefits
and OPEB Liability) are not due and payable in the current period,
and, therefore, are not reported in the governmental funds.
Net assets of governmental activities
See notes to financial statements.
$ 25,468,144
132,727,885
822,681
(164,803)
(437,107)
(50,480,449)
$ 107,936,351
1 61
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TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2009
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (4,136,439)
• Governmental funds report capital outlays as expenditures. However,
in the statement of activities the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense:
Capital outlay purchases 3,600,300
Depreciation (5,556,420)
• Revenues in the statement of activities that do not provide current
financial resources are fully deferred in the statement of revenues,
expenditures. and changes in fund balances. Therefore, the
recognition of revenue for various types of accounts receivable
(i.e., real estate and personal property, motor vehicle excise, etc.)
differ between the two statements. This amount represents the
net change in deferred revenue. (230,597)
• The issuance of long-term debt (e.g., bonds) provides current
financial resources to governmental. funds, while the repayment
of the principal of long-term debt consumes the financial
resources of governmental funds. Neither transaction, however,
has any effect on net assets:
Issuance of debt
(1,100,000)
Repayments of debt
7,980,000
Current year amortization of bond premiums and costs
14,854
Increase in other long-term liabilities (OPEB)
(2,454,449)
• In the statement of activities, interest is accrued on outstanding
long-term debt, whereas in governmental funds interest is not
reported until due.
142,006
• Some expenses reported in the statement of activities, such as
compensated absences, do not require the use of current financial
resources and therefore, are not reported as expenditures in the
governmental funds.
33,628
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES
$ (1,707,117)
See notes to financial statements.
17
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TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2009
Electric
Division
Water
Non Major
Fund
Fund
Funds
Total
ASSETS
Current:
Cash and short-term investments
$ 8,625,772
$ 2,093,097
$ 2,529,846
65
$ 13,248,715
031
703
9
User fees, net of allowance for uncollectibles
7,087,246
1,264,920
1,350,8
-
,
,
345
753
Prepaid expenses
753,345
-
-
296
,
296
Deferred charges
070
563
1
.141,637
1,456
1,706,163
Inventory
,
,
_
189
189
Other assets
Total current assets
18,029,433
3,499,950
3,882,356
25,411,739
Noncurrent:
Restricted cash and cash equivalents
11,573,437
-
-
-
11,573,437
400,D00
4
Restricted investments
4,400,000
-
-
,
391
122
Investment in associated companies
122,391
-
480
1
,
17'468
Deferred charges, net of current portion
t
15,988
248
391
63
,
14,740,565
5,727,214
83,859,027
Capital assets being depreciated; ne
Capital assets not being depreciated
,
,
1,265,842
1,295,028
61,761
2,622,631
Total noncurrent assets
80,768,906
16,037,073
5,788,975
102,594,954
TOTAL ASSETS
98,798,339
19,537,023
9,671,331
128,006,693
LIABILITIES
Current:
Warrants payable 5,448,255 53,148 54,025 5,555,428
Accrued liabilities 258,000 114,992 3,508 376,500
Customer advances for construction 696,517 - - 696,517
Customer deposits 496,335 - - 496,335
Other current liabilities - - 78,637 78,637
Current portion of long-term liabilities:
550,000 1,375,000 181,501 2,106,501
Bonds and loans payable
Accrued employee benefits 81,713 - - 81,713
Unamortized premiums on bonds - 777 777
Total current liabilities 7,530,820 1,543,917 317,671 9,392,408
Noncurrent:
Bonds and loans payable - 12,145,000 176,598 12,321,598
2,791,401 59,000 21,022 2,871,423
Accrued employee benefits
Unamortized premiums on bonds - 3,881 3,881
OPEB liability 436,402 47,050 20,415 503,867
TOTAL LIABILITIES 10,758,623 13,798,848 535,706 25,093,177
NET ASSETS
Invested in capital assets, net of related debt 64,107,090 3,123,377 5,746,584 72,977,051
Restricted for depreciation fund 4,403,130 4,403,130
Unrestricted 19,529,496 2,614,798 3,389,041 25,533,335
TOTAL NET ASSETS $ 88,039,716 $ 5,738,175 $ 9,135,625 $ 102,913,516
See notes to financial statements. 19 4
TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2009
Operating Revenues:
Charges for services
Other
Total Operating Revenues
Operating Expenses:
Personnel expenses
Non-personnel expenses
Intergovernmental
Depreciation
Energy purchases
Other
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Investment income
Interest expense
Loss on disposal of capital assets
Other
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers and Contributions
Capital contributions
Transfers (out)
Change in Net Assets
Net Assets at Beginning of Year
Net Assets at End of Year
Electric
Division Water Non Major
Fund Fund Funds Total
$ 91,111,013
$ 4,798,886
$ 5,080,650
$ 100,990,549
3,056,972
-
-
3,056,972
94,167,985
4,798,886
5,080,650
104,047,521
-
860,432
426,354
1,286,786
-
938,719
129,568
1,068,287
1,207,979
1,636,165
3,555,143
6,399,287
3,134,387
1,444,746
326,148
4,905,281
77,172,343
25,306
29,452
77,227,101
11,019,736
-
-
11,019,736
534,445
92
4,905,368
4,466,665
101,906,478
,
1,633,540
(106,482)
613,985
2,141,043
398,369
40,457
3,257
442,083
(49,911)
(545,754)
(9,522)
(605,187)
(39,767)
-
-
(39,767)
409,501
-
-
409,501
718,192
(505,297)
(6,265)
206,630
2,351,732
(611,779)
607,720
2,347,673
177,680
-
-
177,680
(2,112,725)
(438,600)
(318,302)
(2,869,627)
416,687
(1,050,379)
289,418
(344,274)
87,623,029
6,788,554
8,846,207
103,257,790
$ 88,039,716
$ 5,738,175
$ 9,135,625
$ 102,913,516 6-3
I'
See notes to financial statements. 20
TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2009
Cash Flows From Operating Activities:
Receipts from customers and users
Payments to vendors and employees
Customer refund, purchase power, and fuel charge adjustments
Payments to other governments
Net Cash Provided By (Used For) Operating Activities
Cash Flows From Noncar)itai Financing Activities:
MMWEC refund
Other -
Transfer out
Net Cash Provided By (Used For) Noncapital Financing Activities
Cash Flows From Capital and Related Financing Activities:
Proceeds from issuance of bonds and notes
Acquisition of capital assets
Capital contributions and customer advances
Principal payments on bonds and notes
Interest expense
Net Cash (Used For) Capital and Related Financing Activities
Cash Flows From Investing Activities:
Increase (decrease) in restricted cash and investments
Investment income
Net Cash Provided By Investing Activities
Net Change in Cash and Short-Term Investments
Unrestricted Cash and Short Term Investments, Beginning of Year
Unrestricted Cash and Short.Term Investments, End of Year
Reconciliation of Operating Income (Loss) to Net Cash
Provided By (Used For) Operating Activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation
Changes in assets and liabilities:
User fees receivables
Inventory and prepayments
Other assets
Warrants payable
Accrued liabilities
Other liabilities
OPEB liability
Net Cash Provided By (Used For) Operating Activities
* = includes restricted cash
See notes to financial statements.
Electric
Division Water Non Major
Fund Fund Funds Total
$ 93,182,410
$ 4,851,791
$ 5,117,077
$ 103,151,278
(90,332,097)
(1,248,287)
(625,262)
(92,205,646)
3,056,972
3,056,972
(1,636,165)
(3,555,143)
(5,191,306)
5,907,285
1,967,339
935,672
6,811,296
107,879
-
-
107,879
301,622
301,622
(2,122,725)
(438,600)
(318,302)
(2,879,627)
(1;713,224)
(438,600)
(318,302)
(2,470,126)
450,000
-
450,000-
(6,852,061)
(1,343,982)
(283,382)
(8,479,425)
177,680
-
-
177,6B0
(550,000)
(1,225,000)
(168,709)
(1,943,709)
(49,911)
(545,754)
(9,522)
(605,187)
(7,274,292)
(2,664,736)
(461,613)
(10,400,641)
(551,656)
-
-
(551,658)
898,369
40,457
3,257
442,083
(153,289)
40,457
3,257
(109,575)
(3,233,520)
(1,095,540)
160,014
(4,169,046)
11,859,292
3,188,537
2,369,832
17,417,761
$ 8,625,772
$ 2,093,097
$ 2,529,B46
$ 13,248,715
$ 1,633,540
$ (106,462)
$ 613,985
$ 2,141,043
3,134,387
1,444,746
326,148
4,905,281
2,056,390
52,905
36,427
2,145,722
(497,600)
532,006
1,041
35,447
599
(169)
410
(1,001,875)
(2,989)
(49,118)
(1,053,982)
145,054
(1,897)
2,998
146,155
987
1,401
(15,035)
(12,647)
436,402
47,050
20,415
503,867
$ 5,907,285
$ 1,967,339
$ 936,672
$ 8,811,296
~3a
21
TOWN OF READING, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2009
Municipal
Light
Pension
Pension
Trust
Trust Fund
Funds
ASSETS
Cash and short term investments $ 404,486 $
3,616,255
Investments
69,083,769
3,000,000
Accounts receivable
12,813
-
Other
-
Total Assets
69,501,068
6,616,255
LIABILITIES AND NET ASSETS
Warrants payable -
Other liabilities 171,496 -
Total Liabilities 171,496
NET ASSETS
Total net assets held in trust for pension benefits
and other purposes $ 69,329,572
See notes to financial statements.
$ 6,616,255
Agency
Funds
$ 422,313
3,413
425,726
64,253
361,473
425,726
14 ~~33'
22
TOWN OF READING; MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN .FIDUCIARY NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2009
Additions:
Contributions:
Employers
Intergovernmental
Plan members
Total contributions
Investment Income (Loss):
Increase (decrease) in fair value of investments
Less: management fees
Net investment income (loss)
Total additions
Deductions:
Benefit payments to plan members, beneficiaries,
and other systems
Refunds and transfers to other systems
Administrative expenses
Other
Total deductions
Net increase (decrease)
Net assets:
Beginning of year
End of year
See notes to financial statements.
Pension
Trust Fund
$ 3,600,826
432,110
1,988,078
6,021,014
(22,666,920)
(364,745)
(23,031,665)
(17,010,651)
6,921,635
345,110
67,390
7,334,135
(24,344,786)
93,674,358
$ 69,329,572
Municipal
Light
Pension
Trust Funds
$ 360,000
360,006
212,085
212,085
572,085
892,540
892,540
(320,455)
6,936,710
$ 6,616,255
23
TOWN OF READING, MASSACHUSETTS
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The accounting policies of the Town of Reading (the Town) conform to
generally accepted accounting principles (GAAP) as applicable to govern-
mental units. The following is a summary of the more significant policies:
A. Reporting Entity
The government is a municipal corporation governed by an elected Board
of Selectmen. As required by generally accepted accounting principles,
these financial statements present the government and applicable com-
ponent units for which the government is considered to be financially
accountable. The Reading Contributory Retirement System was estab-
lished to provide retirement benefits primarily to employees and their
beneficiaries. The System is presented using the accrual basis of
accounting and is reported as a pension trust fund in the fiduciary fund
financial statements.
B. Government-i ide and Fund Financial Statements
Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net
assets and the statement of changes in net assets) report information
on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by
taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct
expenses of a given function or segment are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific func-
tion or segment. Program revenues include (1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment and (2) grants and
contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items
not properly included among program revenues are reported instead as
general revenues.
V!
24
Fund Financial Statements
Separate financial statements are provided for governmental funds,
proprietary funds and fiduciary funds, even though the latter are excluded
from the government-wide financial statements. Major individual govern-
mental funds and major individual enterprise funds are reported as sepa-
rate columns in the fund financial statements.
C. Measurement Focus Basis of Accounting and Financial Statement
Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the econ-
omic resources measurement focus and the accrual basis of accounting,
as is the proprietary fund and fiduciary fund financial statements. Reve-
nues are recorded when earned and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all elig-
ibility requirements imposed by the provider have been met. As a general
rule, the effect of interfund activity has been eliminated from the govern-
ment-wide financial statements.
Amounts reported as program revenues include (1) charges to customers
or applicants for goods, services, or privileges provided, (2) operating
grants and contributions, and (3) capital grants and contributions, includ-
ing special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general
revenues include all taxes and excises.
Fund Financial Statements
Governmental fund financial statements are reported. using the current
financial resources measurement focus and the modified accrual basis of
accounting. Revenues are recognized as soon as they are both measur-
able and available. Revenues are considered to be.available when they
are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the government con-
siders property tax revenues to be available if they are collected within
60 days of the end of the current fiscal period. All other revenue items
are considered to be measurable and available only when cash is received
by the government. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expendi-
tures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
The government reports the following major governmental funds:
® The general fund is the government's primary operating fund.
It accounts for all financial resources of the general government, f
except those required to be accounted for in another fund. 3G,
25 "t
® The ARRA (American Recovery and Reinvestment Act) Fund is
used to account for the receipt and expenditure of federal "stimulus"
funds awarded the community to replace some of the fiscal year
2009 Chapter 70 State aid reductions.
Proprietary funds distinguish operating revenues and expenses from non-
operating items. Operating revenues and expenses generally result from
providing'services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services: Operating expenses for enterprise funds include the cost of
sales and services; administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
Private-sector standards of accounting and financial reporting issued prior
to December 1, 1989 generally are followed in both the government-wide
and proprietary fund financial statements to the extent that those stan-
dards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of fol-
lowing subsequent private-sector guidance for their business-type activi-
ties and enterprise funds, subject to this same limitation. The government
has elected not to follow subsequent private-sector guidance.
The government reports the following major proprietary funds:
a Electric Enterprise Fund
® Water Enterprise Fund
The government reports the following fiduciary funds:
The pension trust fund accounts for the activities of the Employees
Contributory Retirement System, which accumulates resources for
pension benefit payments to qualified employees.
The municipal light pension trust fund accounts for the activities of the
Municipal Light Employees Contributory Retirement System, which
accumulates resources for pension benefit payments to qualified
employees.
The agency fund is used to account for student activity funds.
D. Cash and Short-Term Investments
Cash balances from all funds, except those required to be segregated by
law, are combined to form a consolidation of cash. 'Cash balances are
invested to the extent available, and interest earnings are recognized in
the General Fund. Certain special revenue, proprietary, and fiduciary
26 q
~3~
funds segregate cash, and investment earnings become a part of those
funds.
Deposits with financial institutions consist primarily of demand deposits,
certificates of deposits, and savings accounts. A cash and investment
pool is maintained that is available for use by all funds. Each fund's
portion of this pool is reflected on the combined financial statements
under the caption "cash and short-term investments". The interest
earnings attributable to each fund type are included under investment
income. -
For purpose of the statement of cash flows, the proprietary funds consider
investments with original maturities of three months or less to be short-
term investments.
E. Investments
State and local statutes place certain limitations on the nature of deposits
and investments available. Deposits in any financial institution may not
exceed certain levels within the financial institution. Non-fiduciary fund
investments can be made in securities issued by or unconditionally
guaranteed by the U.S. Government or agencies that have a maturity of .
one year or less from the date of purchase and repurchase agreements
guaranteed by such securities with maturity dates of.no more than 90 days
from the date of purchase.
Investments for the Contributory Retirement System and Trust Funds
consist of marketable securities, bonds and short-term money market
investments. Investments are carried at market value.
F. Property Tax Limitations
Legislation known as "Proposition 2 Y2" limits the amount of revenue that
can be derived from property taxes. The prior fiscal year's tax levy limit is
used as a base and cannot increase by more than 2.5 percent (excluding
new growth), unless an override or debt exemption is voted. The actual
fiscal year 2009 tax levy reflected an excess capacity of $ 2,437.
G. Inventories
Inventories are valued at cost using the first-in/first-out (FIFO) method.
The costs of governmental fund-type inventories are recorded as expendi-
tures when purchased rather than when consumed. No significant inven-
tory balances were on hand in governmental funds.
27
H. Capital Assets
Capital assets, which include property, plant, equipment, and infra-
structure assets are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements.
Capital assets are defined by the government as assets with an initial
individual cost of more than $ 5,000 and an estimated useful life in excess
of two years. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are
recorded at estimated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value
of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as
projects are constructed. Interest incurred during the construction phase
of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
Property, plant and equipment is depreciated using the straight-line
method over the following estimated useful lives:
Assets
Years
Land improvements
20
Buildings and improvements
20-40
Machinery, equipment, and
furnishings
3-20
Infrastructure
50
1. Compensated Absences
It is the government's policy to permit employees to accumulate earned
but unused vacation and sick pay benefits. All vested sick and vacation
pay is accrued when incurred in the government-wide, proprietary, and
fiduciary fund financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example,
as a result of employee resignations and retirements.
J. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term debt, and other long-term obliga-
tions are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets.
14 A,, ~ 9'
28
K. Fund Equity
2
In the fund financial statements, governmental funds report reservations
of fund balance for amounts that are not available for appropriation or are
legally restricted by outside parties for use for a specific purpose. Desig-
nations of fund balance represent tentative management plans that are
subject to change.
L. Use of Estimates
The preparation of basic financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosures for contingent assets and liabilities at the date of the basic
financial statements, and the reported amounts of the. revenues and
expenditures/expenses during the fiscal year. Actual results could vary
from estimates that were used.
Stewardship, Compliance, and Accountability
A. Budgetary Information
At the annual town meeting, the Finance Committee presents an operating
and capital budget for the proposed expenditures of the fiscal year com-
mencing the following July 1. The budget, as enacted by town meeting,
establishes the legal level of control and specifies that certain appropria-
tions are to be funded by particular revenues. The original budget is
amended during the fiscal year at special town meetings as required by
changing conditions. In cases of extraordinary or unforeseen expenses,
the Finance Committee is empowered to transfer funds from the Reserve
Fund (a contingency appropriation) to a departmental appropriation.
"Extraordinary" includes expenses which are not in the usual line, or are
great or exceptional. "Unforeseen" includes expenses which are not
foreseen as of the time of the annual meeting when appropriations are
voted.
Departments are limited to the line items as voted. Certain items may
exceed the line item budget as approved if it is for an emergency and for
the safety of the general public. These items are limited by the Massa-
chusetts General Laws and must be raised in the next year's tax rate.
Formal budgetary integration is employed as a management control
device during the year for the General Fund and Proprietary Funds.
Effective budgetary control is achieved for all other funds through
provisions of the Massachusetts General Laws.
29
At year end, appropriation balances lapse, except for certain unexpended
capital items and encumbrances which. will be honored during the subse-
quent year.
B. Budgetary Basis
The General Fund final appropriation appearing on the "Budget and
Actual" page of the fund financial statements represents the final amended
budget after all reserve fund transfers and supplemental appropriations.
C. Budget/GAAP Reconciliation
The budgetary data for the general and proprietary funds is based upon
accounting principles that differ from generally accepted accounting prin-
ciples (GAAP). Therefore, in addition to the GAAP basis financial state-
ments, the results of operations of the general fund are presented in
accordance with budgetary accounting principles to provide a meaningful
comparison with budgetary data.
The following is a summary of adjustments made to the actual revenues
and other sources, and expenditures and other uses, to conform to the
budgetary basis of accounting.
Revenues Expenditures
and Other and Other
General Fund Financing Sources Financing Use
Revenues/Expenditures
(GAAP basis) $ 75,138,859 $ 82,282,982
Other financing sources/uses
(GAAP basis) 3,352,344 -
Subtotal (GAAP basis)
(excluding bond issue) 78,491,203 82,282,982
To record use of free cash and overlay
surplus 1,587,312 -
Reverse beginning of year
appropriation carryforwards
from expenditures - (1,597,001)
Add end of year appropriation
carryforwards to expenditures - 1,210,954
Other 119,052 520,916
To reverse the effects of non-
budgeted refunded debt
payments from escrow. - (4,362,144)
To reverse the effects of non-
budgeted State contributions
for teacher retirements (6,208,161) (6,208,161)
Budgetary basis $ 73,989,406 $ 71,847,546
30
D. Deficit Fund Equity
The Town reflects several special revenue fund deficits, primarily caused
by grant expenses occurring in advance of grant reimbursements. The
deficits in these funds will be eliminated through future intergovernmental
revenues and transfers from other funds'.
3. Cash and Short-Term Investments
Custodial Credit Risk- Deposits. Custodial credit risk is the risk that in the
event of a bank failure, the Town's and Contributory Retirement System's (the
System) deposits may not be returned. Massachusetts General Law Chapter
44, Section 55, limits the Town's deposits "in a bank or trust company or
banking company to an amount not exceeding sixty percent of the capital and
surplus of such bank or trust company or banking company, unless satisfac-
tory security is given to it by such bank or trust company or banking company
for such excess. Massachusetts General Law Chapter 32, Section 2.3, limits
the System's deposits "in a bank or trust company to an amount not exceed-
ing ten percent of the capital and surplus of such bank or trust company. The
Town and System do not have a deposit policy for custodial credit risk.
As of June 30, 2009, $ 3,218,112 of the Town's and $ 245,704 of the
System's bank balances of $ 47,607,857 and $ 405,912, respectively, was
exposed to custodial credit risk as uninsured, uncollateralized, and collateral
held by pledging bank's trust department not in the Town's and System's
name.
The System's exposed balance consists of $ 245,222 invested in PRIT and
$ 482 invested in MMDT.
4. Investments
A. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not
fulfill its obligation to the holder of the investment. For short-term invest-
ments that were purchased using surplus revenues, Massachusetts
General Law, Chapter 44, Section 55, limits the Town's investments to
the top rating issued by at least one nationally recognized statistical rating
organization (NRSROs).
The Town and System do not have a policy for credit risk.
Presented below (in thousands) is the actual rating as of year end for each
investment of the Town: f l
31
Investment Type
Corporate bonds
Corporate equities .
Mutual funds
Certificates of deposit
Federal agency securities
Total investments
Exempt
Fair
From
Value
Disclosure
151
$ - $
282
282 .
984
984
Elating as of Year End
Aaa Aa2 A2
$ 101 $ 50
6,716 6,716 - - -
12,377 - 12,377 - -
$ 20,510 $ 7,982 $ 12,377 $ 101 $ 50
Massachusetts General Law, Chapter 32, Section 23, limits the investment
of System funds, to the extent not required for current disbursements, in the
PRIT Fund or in securities, other than mortgages or collateral loans, which
are legal for the investment of funds in savings banks under the laws of the
Commonwealth, provided that no more than the established percentage of
assets, is invested in any one security.
At June 30, 2009, the Contributory Retirement System maintained its
investments in the State Investment Pool* with a fair value of $ 69,083,769.
This investment type is not rated.
*Fair value is the same as the value of the pool share. The Pension Reserves Investment Trust
was created under Massachusetts General Law, Chapter 32, Section 22, in December 1983. The
Pension Reserves Investment Trust is operated under contract with a private investment advisor,
approved by the Pension Reserves Investment Management Board. The Pension Reserves
Investment Management Board shall choose an investment advisor by requesting proposals from
advisors and reviewing such proposals based on criteria adopted under Massachusetts General
Law, Chapter 30B.
B. Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g. broker-dealer) to a transaction, a govern-
ment will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The Town and
System do not have policies for custodial credit risk.
The System's investments of $ 69,083,769 were exposed to custodial
credit risk as uninsured and uncollateralized. However, the investments
were held in the State Investment Pool.
Of the investment in Corporate bonds of $ 151,436, the government has a
custodial credit risk exposure of $ 151,436 because the related securities
are uninsured, unregistered and held by the Town's brokerage firm, which
is also the Counterparty to these securities.
C. Concentration of Credit Risk
The Town places no limit on the amount the Town may invest in any one ~T
issuer. Investments in any one issuer (other than U.S. Treasury securities
32
and mutual funds) that represent 5% or more of total investments are as
follows (in thousands):
Federal National Mortgage Association $ 1,501,875
Federal Home Loan Mortgage Corp. $ 6,335,802
Certificates of Deposit $ 5,739,561
Massachusetts General Law Chapter 32, Section 23 limits the amount the
System may invest in any one issuer or security type, with the exception of
the PRIT Fund.
The System does not have an investment in one issuer greater than 5% of
total investments, with the exception of the PRIT Fund.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will ad-
versely affect the fair value of an investment. Generally, the longer the
maturity of an investment, the greater the sensitivity of.its fair value to
changes in market interest rates. The Town and System do not have
a formal investment policy that limits investment maturities as a means
of managing its exposure to fair value losses arising from increasing
interest rates.
Information about the sensitivity of the fair values of the Town's
investments to market interest rate fluctuations is as follows:
Investment Type
Debt Related Securities:
Corporate bonds
Certificates of Deposit
Federal agency securities
Total
E. Foreign Currency Risk
Investment Maturities (in Years)
Fair Less
Value Than 1 11-55 6-10
$ 151 $ 151 $ - $ -
6,716 6,716 -
12,377 - 4,153 8,224
$ 19,244 $ 6,867 $ 4,153 $ 8,224
Foreign currency risk is the risk that changes in foreign exchange rates
will adversely affect the fair value of an investment. The Town and
System do not have policies for foreign currency risk.
33
~~4y.
5.
6.
Taxes Receivable
Real estate and personal property taxes are levied and based on values
'assessed on January 1st of every year. Assessed values are established by
the Board of Assessor's for 100% of the estimated fair market value. Taxes
are due on a quarterly basis and are subject to penalties and interest if they
are not paid by the respective due date. Real estate and personal property
taxes levied are recorded as receivables in the fiscal year they relate to.
Fourteen days after the due date for the final tax bill for real estate taxes, a
demand notice may be sent to the delinquent taxpayer. Fourteen days after
the demand notice has been sent, the tax collector may proceed to file a lien
against the delinquent taxpayers' property. The Town has an ultimate right
to foreclose on property for unpaid taxes. Personal property taxes cannot be
secured through the lien process.
Taxes receivable at June 30, 2009 consist of the following (in thousands):
Real Estate
2009
Personal Property
2009
2008
2007
2006
Prior
Tax Liens
Deferred Taxes
Taxes in Litigation
Total
Allowance for Doubtful Accounts
$ 171
171
18
316
97
1
$ 603
The receivables reported in the accompanying entity-wide financial state-
ments reflect the following estimated allowances for doubtful accounts (in
thousands):
Property taxes
Excises
6
4
2
2
4
Governmental
$ 106
35
41-
34
7. Capital Assets
Capital asset activity for the year ended. June 30,
2009 was as follows (in
thousands):
Beginning
Ending
Balance
Increases Decreases
Balance
Governmental Activities:
Capital assets, being depreciated:
Land improvements
$ 1,678
$ 848 $ - $
2,526
Buildings and improvements
125,959
826 -
126,785
Machinery, equipment, and furnishings
6,087
1,126 -
7,213
Infrastructure
38,011
475 -
38,486
Total capital assets, being depreciated
171,735
3,275 -
175,010
Less accumulated depreciation for:
Land improvements
(435)
(92) -
(527)
Buildings and improvements
(18,728)
(3,374) -
(22,102)
Machinery, equipment, and furnishings
(2,045)
(581) -
(2,626)
Infrastructure
19,782
1,509 -
21,291
Total accumulated depreciation
40,990
5,556 -
46,546
Total capital assets, being depreciated, net
130,745
(2,281) -
128,464
Capital assets, not being depreciated:
Land
3,939
- -
3,939
Construction in progress
-
325
325
Total capital assets, being depreciated, net
3,939
325 -
4,264
Governmental activities capital assets, net
$ 134,684
$ 1,956 $ - $ 132,728
35
Business-Type Activities:
Capital assets, being depreciated:
Land improvements
Buildings and improvements
Machinery, equipment, and furnishings
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Land improvements
Buildings and improvements
Machinery, equipment, and furnishings
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, being depreciated, net
Business-type activities capital assets, net
Beginning
Ending
Balance
Increases
Decreases
Balance
$ 84
$ -
$ - $
84
16,620
119
-
16,739
24,544
5,729
(63)
30,210
96,714
1,295
737
99,272
137,962
9,143
(800)
146,305
(39)
(2)
-
(41)
(8,250)
(533)
-
(8,783)
(16,498)
(871)
32
(17,337)
33,514
3,499
728
36,285
58,301
4,905
760
62,446
79,661
4,238
(40)
83,859
1,450
-
-
1,450
1,837
1,173
1,837
1,173
3,287
1,173
1,837
2,623
$ 82,948
$ 5,411
$ 1,877 $ 86,482
Depreciation expense was charged to functions of the Town as follows (in
thousands):
Governmental Activities:
General government $ 189
Public safety 451
Education 2,961
Public works 1,780
Health and human services 31
Culture and recreation 144
Total depreciation expense - governmental activities $ 5,556
Business-Type Activities:
Electric $ 3,134
Water 1,445
Other - Sewer 326
Total depreciation expense - business-type activities $ 4,905
8. Warrants Payable
Warrants payable represent 2009 expenditures paid by July 15, 2009.
36
9.
10.
11.
Deferred Revenue
Governmental funds report deferred revenue in connection with receivables
for revenues that are not considered to be available to liquidate liabilities of
the current period.
The balance of the General Fund deferred revenues account is equal to
the total of all June 30, 2009 receivable balances, except real and personal
property taxes that are accrued for subsequent 60 day collections.
Anticipation Notes Payable
The following summarizes activity in notes payable during fiscal year 2009 (in
thousands):
Balance New Balance
7/1/08 Issues Repayments 6130/09
Computer equipment $ 1,250 $ - $ 1,250 $ -
Total $ 1,250 $ - $ 1,250 $ -
Long-Term Debt
A. Bond Authorizations
Long-term debt authorizations which have not been issued or rescinded
as of June 30, 2009 are as follows:
Purpose
Amount
High School
$ 187,000
MWRA loan program
299,400
Energy improvements
120,000
Birch meadow tennis courts
140,000
Turf field improvements
275,000
Sunnyside/Fairview sewer mains
65,000
Fire ladder truck
50,000
Fire engine
525,000
Energy improvements
5,000,000
Total
$ 6,661,400
B. General Obligation Bonds
The Town issues general obligation bonds to provide funds for the acquisi-
tion and construction of major capital facilities. General obligation bonds
have been issued for both governmental and business-type activities.
General obligation bonds currently outstanding are as follows:
37
Amount
Serial
Outstanding
Maturities
Interest
as of
Governmental Activities:
Through
Rates %
June 30, 2009
Police station
02/01/12
4.12%
$ 1,205,000
Coolidge Middle School
02101/21
4.75%
5,675,000
Memorial High School
03/15/24
4.22%
28,610,000
Barrow Elementary School
06/30/24
3.96%
1,895,000
Wood End Elementary School
06/30/24
3.96%
2,250,000
Wood End Elementary School
06/30/24
3.92%
150,000
Wood End Elementary School
04/15/24
3.94%
450,000
Wood End Elementary School
04/15/24
3.94%
685,000
Downtown Improvement projects
11/01/17
3.45%
585,000
Fire Engine
11/01112
3.45%
325,000
Turf Field improvements
11/01/12
3.45%
300,000
Joshua Eaton refunding
07/01113
3.05%
195,000
Birch Meadow refunding
07/01/12
3.05%
70,000
Parker School refunding
07/01/17
3.05%
1,825,000
Ladder truck
07/01/17
3.05%
720,000
Tennis courts
07101/12
3.05%
385,000
Financial hardware and software
01/27/13
2.00%
1,100,000
Total Governmental Activities:.
$ 46,425,000
Amount
Serial
Outstanding
Maturities
Interest
as of
Business-Type Activities:
Through
Rates %
June 30, 2009
Water treatment plant
06/30/15
3.38%
$ 600,000
MWRA buy-in
04/15/27
4.00%
2,860,000
Water mains
04/15/12
3.66%
1,480,000
MWRA buy-in
11101/17
3.05%
7,410,000
Water demo
07/01/17
3.05%
720,000
MWRA water supply
01/27/13
2.00%
450,000
MWRA inflow
05/15/10
0.00%
83,677
MWPAT septic
02/01/17
0.00%
13,958
MWRA sewer
08/15/12
0.00%
35,464
Fairview and Sunnyside sewer
11/01/11
3.05%
225,000
Light plant enlargement
09/01/09
4.61%
550,000
Total Business-Type Activities:
$ 14,428,099
C. Future Debt Service
The annual payments to retire all general obligation long--term debt
outstanding as of June 30, 2009 are as follows: f
38 " 1
Governmental
2010
2011
2012
2013
2014
2015-2019
2020-2024
Total
Principal
$ 3,720,000
3,725,000
3,745,000
3,370,000
2,870,000
14,800,000
14,195,000
$ 46,425,000
Interest
$ 1,942,238
1,821,464
1,692,143
1,556,344
1,555,438
5,263,815
1,969,356
$ 15,800,798
Total
5,662,238
5,546,464
5,437,143
4,926,344
4,425,438
20,063,815
16,164, 356
$ 62,225,798
The general fund has been designated as the sole source to repay the
governmental-type general obligation debt outstanding as of June 30,
2009:
Business-Type
2010
2011
2012
2013
2014
2015-2019
2020-2024
2025-2029
Total
Princi al
$ 2,106, 501
1,458, 866
1,453,866
738,866
730,000
3,170, 000
2,750,000
2,020,000
$ 14,428,099
Interest
i; 535,097
467,638
416,116
366,670
339,905
1,288,026
697,875
162,338
$ 4,273,665
Total
2,641,598
1,926,504
1,869,982
1,105, 536
1,069,905
4,458,026
3,447,875
2,182, 338
$ 18,701,764
D, Changes in General Long-Term Liabilities
During the year ended June 30, 2009, the following changes occurred in
long-term liabilities (in thousands):
Equals
Total
Total
Less L
ong-Term
Balance
Balance
Current
Portion
s
Additi
Reductions
6/30/09
Portion
6/30/09
7/1/08
on
Governmental Activities
Bonds payable $
53,305
$ 1,100
$ (7,980) $
46,425
$ (3,720) $
42,705
Other:
Accrued employee benefits
1,635
23
(57)
1,601
(80)
1,521
OPEB
-
2,454
-
2,454
-
2,454
299
-
24
275
25
250
Other
$
239
55
577
$ 3
$ 8,061 $
10
755
$ 3,825 $
46,930
Totals
,
,
4
=
39
~SD
VI
Total Total Less Long-Term
Balance Balance Current
Portion.
7/1/08 Additions Reductions 6/30/09 Portion
6/30109
Business-Type Activities
Bonds and loans payable $ 15,922 $ 450 $ (1,944) $ 14,428 $ (2,106) $
12,322
Other:
Accrued employee benefits 2,759 272 (78) 2,953 (82)
2,871
Unamortized premium
1
5 (1)
4
)
on bonds 6 - (
504 - 504 -
504
OPEB -
Totals $ 18,687 $ 1,226 $ (2,023 $ 17,890 $ (2,189) $
15,701
12. Restricted Net Assets
The accompanying entity-wide financial statements report restricted net
assets when external constraints from grantors or contributors are placed
on net assets.
Permanent fund restricted net assets are segregated between nonexpend-
able and expendable. The nonexpendable portion represents the original
restricted principal contribution, and the expendable represents accumulated
earnings which are available to be spent based on donor restrictions.
13. Reserves of Fund Equity
"Reserves" of fund equity are established to segregate fund balances which
are either not available for expenditure in the future or are legally set aside for
a specific future use.
The following types of reserves are reported at June 30, 2009:
Reserved for Encumbrances - An account used to segregate that portion of
fund balance committed for expenditure of financial resources upon vendor
performance.
Reserved for Expenditures - Represents the amount of fund balance
appropriated to be used for expenditures in the subsequent year budget.
Reserved for Stabilization - An account used to segregate reserves set aside
by the Town to fund unforeseen emergencies and to fund long-term capital
projects and equipment purchases.
Reserved for Perpetual Funds - Represents the principal of the nonexpend-
able trust fund investments. The balance cannot be spent for any purpose,
however, it may be invested and the earnings may be spent.
40 It
14. Subsequent Events
Subsequent to June 30, 2009, the Town has incurred the following additional
debt:
Amount
Energy Improvement bonds $ 5,000,000
Fire Truck bonds 525,000
Total Bonds $ 5,525,000
15. Commitments and Contingencies
Interest
Issue
Maturity
Rates
Date
Date
2.00-3.75%
07/30/09
07130/24
2.00%
07/30/09
07/30/14
Outstanding Lawsuits - There are several pending lawsuits in which the
Town is involved. The Town's management is of the opinion that the potential
future settlement of such claims would not materially affect its financial
statements taken as a whole.
Grants - Amounts received or receivable from grantor agencies are subject to
audit and adjustment by grantor agencies, principally the federal government.
Any disallowed claims, including amounts already collected, may constitute
a liability of the applicable funds. The amount of expenditures which may
be disallowed by the grantor cannot be determined at this time, although the
Town expects such amounts, if any, to be immaterial.
16. Post-Employment Health Care and Life Insurance Benefits
Other Post-Employment Benefits
During the year, the Town implemented GASB Statement 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions. Statement 45 requires governments to account for other post-
employment benefits (OPEB), primarily healthcare, on an accrual basis rather
than on a pay-as-you-go basis. The effect is the recognition of an actuarially
required contribution as an expense on the Statement of Revenues,
Expenses, and Changes in Net Assets when a future retiree earns their post-
employment benefits, rather than when they use their post-employment ben-
efit. To the extent that an entity does not fund their actuarially required contri-
bution, a post-employment benefit liability is recognized on the Statement of
Net Assets over time.
A. Plan Description
In addition to providing the pension benefits described in Note 17, the
Town provides post-employment health and life insurance benefits for
retired employees through the Town of Reading's Massachusetts
41
~~v
Interlocal Insurance Association (MIIA) Health Benefits Trust. Benefits,
benefit levels, employee contributions and employer contributions are
governed by Chapter 32 of the Massachusetts General Laws. As of
June 30, 2008, the actuarial valuation date, approximately 645 retirees
and 524 active employees meet the eligibility requirements. The plan
does not issue a separate financial report.
B. Benefits Provided
The Town provides post-employment medical, prescription drug, and life
insurance benefits to all eligible retirees and their surviving spouses. All
active employees who retire from the Department and meet the eligibility
criteria will be eligible to receive these benefits.
C. Funding Policy
Retirees contribute 30% of the cost of the medical and prescription drug
plan, as determined by the MIIA Health Benefits Trust. Retirees also
contribute 50% of the premium for a $ 5,000 life insurance benefit. The
Department contributes the remainder of the medical, prescription drug,
and life insurance plan costs on a pay-as-you-go basis.
D. Annual OPEB Costs and Net OPEB Obligation
The Town's fiscal 2009 annual OPEB expense is calculated based on
the annual required contribution of the employer (ARC), an amount actu-
arially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover the normal cost per year and amortize the
unfunded actuarial liability over a period of twenty years. The following
table shows the components of the Town's annual OPEB cost for the year
ending June 30, 2009, the amount actually contributed to the plan, and the
change in the Town's net OPEB obligation based on an actuarial valuation
as of June 30, 2008.
Annual Required Contribution (ARC)
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost
Contributions made
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
42
$ 6,150,666
176,035
6,326,701
(3,368,385)
2,958,316
$ 2,958,316
The Town's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation were as follows:
Annual OPEB
Percentage of
OPEB
Cost
Net OPEB
Fiscal year ended Cost Contributed Obligation
2009 $ 6,326,701 46.07% $ 2,958,316
The Town's net OPEB obligation as of June 30, 2009 is recorded as a
component of the "noncurrent liabilities" line item.
E. Funded Status grid Funding Progress
The funded status of the plan as of June 30, 2008, the date of the most
recent actuarial valuation was as follows:
Actuarial accrued liability (AAL) $ 60,022,927
Actuarial value of plan assets -
Unfunded actuarial accrued liability (UAAL) $ 60,022,927
Funded ratio (actuarial value of plan assets/AAL) 0%
Covered payroll (active plan members) N/A
UAAL as a percentage of covered payroll N/A
Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and assumptions about the probability of events far into
the future. Examples include assumptions about future employment, .
mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Town and the plan members and include the
types of benefits provided at the time of each valuation. and the historical
pattern of sharing of benefit costs between the Town and plan members
to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce short-term volatility in actuarial '
43
L, 14Y .
accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
17.
In the June 30, 2008 actuarial valuation, the Projected Unit Credit actuarial
cost method was used. The actuarial value of assets was not determined,
as the Town has not advance funded its obligation. The actuarial assump-
tions included a 7.75% investment rate of return and an initial annual
health care cost trend rate of 10.0%o which decreases to a 5.0% long-term
rate for all health care benefits after seven years. The amortization costs
for the initial UAAL is a level percentage of payroll amortization, with
amortization payments increasing at 2.5% per year for a period of 20
years.
Contributory Retirement System
The Town follows the provisions of GASB Statement No. 27, Accounting for
Pensions for State and Local Government Employees, (as. amended by
GASB 50) with respect to the employees' retirement funds.
A. Plan Description and Contribution Information
Substantially all employees: of the Town (except teachers and administra-
tors under contract employed by the School Department) are members of
the Reading Contributory Retirement System (Reading CRS), a cost
sharing, multiple employer defined benefit PERS. Eligible employees
must participate in the Reading CRS. The pension plan provides pension
benefits, deferred allowances, and death and disability benefits. Chapter
32 of the Massachusetts General Laws establishes the authority of the
Reading CRS Retirement Board. Chapter 32 also establishes contribution
percentages and benefits paid. The Reading CRS Retirement Board does
not have the authority to amend benefit provisions. As required by
Massachusetts General Laws, the System issues a separate report to the
Commonwealth's Public Employee Retirement Administration Commis-
sion.
Membership of each plan consisted of the following at December 31,
2008:
Retirees and beneficiaries receiving benefits
Terminated plan members entitled to but not yet
receiving benefits
Active plan members
Total
Number of participating employers
44
320
27
354
701
3 ~ P~ .
Ll
Employee contribution percentages are specified' in Chapter 32 of the
Massachusetts General Laws. The percentage is determined by the
participant's date of entry into the system. All employees hired after
January 1, 1979 contribute an additional 2% on all gross regular earnings
over the rate of $ 30,000 per year. The percentages are as follows:
Before January 1, 1975 5%
January 1, 1975 - December 31, 1983 7%
January 1, 1984 -June 30, 1996 80/0
Beginning July 1, 1996 9%
Employers are required to contribute at actuarially determined. rates as
accepted by the Public Employee Retirement Administration Commission
(PERAC).
Schedule of Employer Contributions:
Year Ended
Annual Required
Percentage
June 30
Contribution
Contributed
2000
$ 2,293,800
100%
2001
2,910,900
100%
2002
2,980,400
100%
2003
3,051,200
100%
2004
3,124, 800
100%
2005
3,405,725
100%
2006
3,488,686
100%
2007
3,696,695
1006/0
2008
3,785,501
100%
2009
3,600,826
100%
B. Summary of Signant Accounting Policies
Basis of Accounting - Contributory retirement system financial statements
are prepared using the accrual basis of accounting. Plan member contri-
butions are recognized in the period in which the contributions are due.
Employer contributions are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits and
refunds are recognized when due and payable in accordance with the
terms of the plan.
Method Used to Value Investments - Investments are reported at fair
value in accordance with PERAC requirements.
C. Funded Status and Funding Progress
The information presented below is from the Reading Contributory
Retirement System's most recent valuation.
45
Actuarial
UAAL as
Accrued
a Percent-
Actuarial Liability Unfunded
age of
Actuarial Value of (AAL) - AAL Funded Covered
Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll
Payroll
Date (a) b-a a/b
b-a /c
06/30/07 $ 84,784 $ 112,012 $ 27,228 75.7% $ 19,313
141.0%
The Schedule of Funding Progress following the notes to the financial
statements presents multi-year trend information about the actuarial
value of plan assets relative to the actuarial accrued liability for benefits.
D. Actuarial Methods and Assumptions
The annual required contribution for the current year was determined
as part of the actuarial valuation using the entry age normal actuarial
cost method. Under this method an unfunded actuarial accrued liability
of $ 27-.2 million was calculated. The actuarial assumptions included
(a) 7.75% investment rate of return and (b) a projected salary increase
of 5.00% per year. Liabilities for cost of living increases have been
assumed at an annual increase of 3%, on the first $ 12,000 of benefit
payments. The actuarial value of assets is determined by projecting the
market value of assets as of the beginning of the prior plan year with the
assumed rate of return during that year (7.75%0) and accounting for
deposits and disbursements with interest at the assumed rate of return.
An adjustment is then applied to recognize the difference between the
actual investment return and expected return over a five-year period.
As of June 30, 2009, the unfunded actuarially accrued liability is being
amortized over 15 years using 1.5% increase in payments method.
E. Teachers
As required by State statutes, teachers of the Town are covered by the.
Massachusetts Teachers Retirement System (MTRS). The MTRS is
funded by contributions from covered employees and the Commonwealth
of Massachusetts. The Town is not required to contribute.
All persons employed on at least a half-time basis, who are covered under
a contractual agreement requiring certification by the Board of Education
are eligible, and must participate in the MTRS.
Based on the Commonwealth of Massachusetts' retirement laws, employ-
ees covered by the pension plan must contribute a percentage of gross
earnings into the pension fund. The percentage is determined by the
participant's date of entry into the system and gross earnings, up to.
$ 30,000, as follows:
46
4 ~,_O
Before January 1, 1975 5%
January 1, 1975 - December 31, 1983 7%
January 1, 1984 - June 30, 1996 8%
July 1, 1996 - June 30, 2001 9%
Beginning July 1, 2001 11%
18.
19.
*Effective January 1, 1990, all. participants hired after January 1, 1979, who
have not elected to increase to 11 contribute an additional 2% of salary in
excess of $ 30,000.
The Town's current year covered payroll for teachers and administrators was
not available.
In fiscal year 2009, the Commonwealth of Massachusetts contributed
$ 6,208,161 to the MTRS on behalf of the Town. This is included in the
education expenditures and intergovernmental revenues in the general
fund.
Risk Management
The Town is exposed to various risks of loss related to torts; theft of, damage
to and destruction of assets; errors and omissions; and natural disasters fof
which the government carries commercial insurance. There were no signifi-
cant reductions in insurance coverage from the previous year and have been
no material settlements in excess of coverage in any of the past three fiscal
years.
Beginning Fund Balance Reclassification
The Town's major governmental funds for fiscal year 2009, as defined by
GASB Statement 34, have changed from the previous fiscal year.
Accordingly, the following reconciliation is provided:
Nonmajor funds
Memorial High
School. capital
project fund
Total
Fund Equity
6/30/08
(as previously
re orted
$ 14,130,619
1,382,812
$ 15,513,431
47
Reclassification
$ 1,382,812
(1,382,812)
Fund Equity
6/30/08
(as restated)
$ 15,513,431
$ 15,513,431
~.Sg.
Town of Reading Municipal Light Department
(Votes to Financial Statements
1. Summary of Significant Accounting Policies
The significant accounting policies of the Town of Reading Municipal Light
Department ("the Department") (an enterprise fund of the Town of Reading)
are as follows:
A. Business Activity - The Department purchases electricity which it distri-
butes to consumers within the towns of Reading, North Reading,
Wilmington, and Lynnfield.
B. Regulation and Basis of Accounting - Under Massachusetts General
Laws, the Department's electric rates are set by the Municipal Light Board.
Electric rates, excluding the fuel charge, cannot be changed more often
than once every three months. Rate schedules are filed with the Mass-
achusetts Department of Public Utilities (DPU). While the DPU exercises
general supervisory authority over the Department, the Department's
rates are not subject to DPU approval. The Department's policy is to
prepare its financial statements in conformity with generally accepted
accounting principles.
Proprietary funds distinguish operating revenues and expenses from
nonoperating items. Operating revenues and expenses generally result
from providing services and producing and delivering goods in connec-
tion with a proprietary fund's principal ongoing operations. The principal
operating revenues of the enterprise fund are charges to customers for
sales and services. Operating expenses for enterprise funds include the
cost of sales and services, administrative expenses and depreciation on
capital assets. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
Private-sector standards of accounting and financial reporting issued
prior to December 1, 1989 generally are followed in the proprietary fund
financial statements to the extent that those standards do not conflict with
or contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector
guidance for their enterprise funds, subject to this same limitation. The
Department has elected not to follow subsequent private-sector guidance.
C. Concentrations - The Department operates within the electric utility
industry which has undergone significant restructuring and deregulation.
Legislation was enacted by the Commonwealth of Massachusetts in
1998 which changed the electric industry. The law introduced competi-
tion and provided consumers with choices while assuring continued
""l
48
reliable service. Municipal utilities are not currently subject to this
legislation.
D. Retirement Trust - The Reading Municipal Light Department Employees'
Pension Trust (the "Trust") was established on December 30, 1966, by
the Town of Reading's Municipal Light Board pursuant to Chapter 164 of
the General Laws of the Commonwealth of Massachusetts.
The Trust constitutes the principal instrument of a plan established by the
Municipal Light Board for the purpose of funding the Department's annual
required contribution to the Town of Reading Contributory Retirement
System (the System), a cost sharing, multi-employer public employee
retirement system.
E. Revenues - Revenues are based on rates established by the Department
and filed with the DPU. Revenues from sales of electricity are recorded
on the basis of bills rendered from monthly meter readings taken on a
cycle basis and are stated net of discounts. Recognition is given to the
amount of sales to customers which are,unbilled at the end of the fiscal
period.
F. Cash and Short-term Investments - For the purposes of the Statement of
Cash Flows, the Department considers both restricted and unrestricted
cash on deposit with the Town Treasurer to be cash or short-term invest-
ments. For purpose of the Statement of Net Assets, the proprietary funds
consider investments with original maturities of three months or less to be
short-term investments.
G. Investments - State and local statutes place certain limitations on the
nature of deposits and investments available. Deposits in any financial
institution may not exceed certain levels within the financial institution.
Non-fiduciary fund investments'can be made in securities issued or un-
conditionally guaranteed by the U.S. Government or agencies that have
a maturity of one year or less from the date of purchase and repurchase
agreements guaranteed by such securities with maturity dates of no more
than 90 days from date of purchase.
Investments for the Department and the Trust consist of U.S. government
bonds that are being held to maturity. Investments are carried at cost.
H. Invento - Inventory consists of parts and accessories purchased for
use in the utility business for construction, operation and maintenance
purposes and is stated at average cost. Meters and transformers are
capitalized when purchased.
1. Capital Assets and Depreciation - Capital assets, which include property,
plant, equipment, and utility plant infrastructure, are recorded at historical
cost or estimated historical cost when purchased or constructed. Donated
49 4
capital assets are recorded at estimated fair market value at the date of
the donation.
The cost of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as
they are acquired or constructed. Interest incurred during the construc-
tion phase of proprietary fund capital assets is included as part of the
capitalized value of the constructed asset. When capital assets are
retired, the cost of the retired asset, less accumulated depreciation,
salvage value and any cash proceeds, is charged to the Department's
unrestricted net assets account.
Massachusetts General Laws require utility plant in service to be depre=ciated at an annual rate of 3%. To change this rate, the Department must
obtain approval from the DPU. Changes in annual depreciation rates
may be made for financial factors relating to cash flow for plant expansion,
rather than engineering factors relating to estimates of useful lives.
J. Amortization - Costs related to the issuance of bonds have been capital-
ized and are being amortized over the life of the bonds.
K. Accrued Compensated Absences - Employee vacation leave is vested
annually but may only be carried forward to the succeeding year with
supervisor approval and, if appropriate, within the terms of the applicable
Department policy or union contract. Generally, sick leave may accumu-
late according to union and Department contracts and policy, and is paid
upon normal termination at the current rate of pay. The Department's
policy is to recognize vacation costs at the time payments are made.
The Department records accumulated, unused, vested sick pay as a lia-
bility. The amount recorded is the amount to be paid at termination at the
current rate of pay.
L. Long-Term Obligations - The proprietary fund financial statements report
long-term debt and other long-term obligations as liabilities in the pro-
prietary fund statement of net assets.
M. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures for contingent assets and liabilities
at the date of the financial statements, and the reported amounts of the
revenues and expenses during the fiscal year. Actual results could vary
from estimates that were used.
N. Rate of Return - The Department's rates must be set such that earnings
attributable to electric operations do not exceed eight percent of the net
L4~,
50
cost of plant. The audited financial statements are prepared in accord-
ance with auditing standards generally accepted in the United States of
America. To determine the net income subject to the rate of return, the
Department performs the following calculation. Using the net income per
the audited financials, the return on investment to the Town of Reading
is added back, the fuel charge adjustment is added or deducted, and
miscellaneous debits/credits (i.e. gain/loss on disposal of fixed assets,
etc.) are added or.deducted, leaving an adjusted net income figure for
rate of return purposes. Investment interest income and bond principal
payments are then deducted from this figure to determine the net income
subject to the rate of return. The net income subject to the rate of return
is then subtracted from the allowable eight percent rate of return, which
is calculated by adding the book value of net plant and the investment in
associated companies less the contributions in aid of construction mult-
iplied by eight percent. From this calculation, the Municipal Light Board
will determine what cash transfers need to be made at year end.
2.
Cash and Investments
Cash and investments as of June 30, 2009. are classified in the accom-
panying financial statements as follows:
Statement of net assets:
Unrestricted cash and short-term investments $ 8,635;772
Restricted cash and short-term investments 11,563,437
Restricted investments 4,400,000
Fiduciary funds:
Cash and short-term investments 3,616,255
Investments 3,000,000
Total cash and investments $ 31.215.464
Cash and investments at June 30, 2009 consist of the following:
Cash on hand $ 3,000
Deposits with financial institutions 23,812,464
Investments 7,400,000
4
Total cash and investments $31,215,46
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that the fair value of an investment will be ad-
versely affected by changes in market interest rates. Generally, the longer
the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the Department
manages its exposure to interest rate risk is by purchasing a combination
of shorter term and longer term investments and by timing cash flows from
51
maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
As of June 30, 2009, the Dep
artment (including the Pension Trust) had the
following investments:
Restricted Pension Maturity Moody's
Investments Trust Date Ratin
Government agency bonds
Freddie Mac
$ 2,000,000 - 01/15/13 AAA
Freddie Mac
1,400,000 - 07/15/14 AAA
Freddie Mac
500,000 - 05/15/15 AAA
Federal Home Loan Bank
500,000 - 06/01/16 AAA
Federal Home Loan Mtg. Corp.
- 1,200,000 01/15/13 AAA
Federal Home Loan Mtg. Corp.
- 1,800, 000 12/15/14 AAA
Total
0
$ 4A00,00_0 $3,000,00
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that the issuer of an investment will riot fulfill
its obligation to the holder of the investment. This is measured by the assign-
ing of a rating by a nationally recognized statistical rating organization. Pre-
sented below is the actual rating as of year end for each of, the Department's
(including the Pension Trust) investment types:
Minimum Rating as of Year End
Legal Not
Investment Type Amount Ratin AAA Rated
Government agency bonds $ 7,400,00 0 N/A $7,400,0 00 $ -
Total $7.400,0 00 $7.400,0 00 $ -
Concentration of Credit Risk
The Department follows the Town of Reading's investment policy, which does
not limit the amount that can be invested in any one issuer beyond that stipu-
lated by Massachusetts General Laws. Investments, in any one issuer (other
than U.S. Treasury securities, mutual funds, and external investment pools)
that represent more than 5% of the Department's total investments (including
the Pension Trust investments) are as follows:
52
Reported
Issuer Investment Type Amount
Freddie Mac Government agency bonds $ 3,900,000
Freddie Home Loan Mtg. Corp. Government agency bonds 3,000,000
Federal Home Loan Bank Government agency bonds 500,000
Custodial Credit Risk
Custodial Credit Risk for deposits is the risk that, in the event of the failure of
a depository financial institution, the Department will not be able to recover its
deposits or will not be able to recover collateral securities that are in the poss-
ession of an outside party. The custodial credit risk for investments is the risk
that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, the Department will not be able to recover the value of its invest-
ments or collateral securities that are in the possession of another party.
Massachusetts General Laws, Chapter 44, Section 55, limits deposits "in a
bank or trust company or banking company to an amount not exceeding sixty
per cent of the capital and surplus of such bank or trust company or banking
company, unless satisfactory security is given to it by such hank or trust com-
pany or banking company for such excess." The Department follows the.
Massachusetts statute as written, as well as the Town of Reading's deposit
policy for custodial credit risk.
Because the Department pools its cash with the Town of Reading, the speci-
fic custodial credit risk of the Department's deposits could not be determined
at June 30, 2009. As of June 30, 2009, Department investments (including
the Pension Trust) in the following investment types were held by the same
broker-dealer (counterparty) that was used by the Department to buy the
securities:
Investment T Pe Reported Amount
.
Government agency bonds $7,400000
0
Total $7,400,00
3.
Restricted Cash and Investments
Restricted cash and investments consist of the following at June 30, 2009:
~ q,
J~ to
53
Depreciation fund
Construction fund
Deferred fuel reserve
Rate stabilization
Reserve for uncollectible accounts
Sick leave benefits
Insurance reserve
Hazardous waste fund
Customer deposits
Total
Cash
Investments
$ 4,403,130
$ -
1,000,000
-
1,739,394
-
2,347,224
2,900,000
28,988
-
1,373,114
1,500,000
35,252
-
150,000
-
496,335
-
$11,573, 437
$ 4 400.000
Restricted investments are invested in government agency bonds, which will
be held to maturity, and are reported at book value of $ 4,400,000. The fair
market value of the investments at June 30, 2009 was $ 4,347,636.
The Department maintains the following restricted cash accounts:
- Depreciation fund -The. Department is, required to reserve 3.0% of
capital assets each year to fund capital improvements.
- Construction fund - This account reflects a balance set aside by the
Board of Commissioners to fund capital asset purchases.
- Deferred fuel reserve - The Department transfers the difference bet-
ween the customers' monthly fuel charge adjustment and actual fuel
costs into this account to be used in the event of a sudden increase
in fuel costs.
- Rate stabilization -.The Department transfers funds in excess of 8%
of capital assets to this account to be used to stabilize customer rates.
- Reserve for uncollectible accounts - This account was set up to offset
a portion of the Department's bad debt reserve.
- Sick leave benefits - This account is used to offset the Department's
actuarially determined compensated absence liability.
- Insurance reserve - This account reflects a balance set aside by
the Board of Commissioners as an insurance deductible reserve.
- Hazardous waste fund -This reserve was set up by the Board of
Commissioners to cover the Department's insurance deductible in
the event of a major hazardous materials incident.
- Customer deposits - Customer deposits that are held in escrow.
b S-1
54
4. Accounts Receivable
Accounts receivable consists of the following at June 30, 2009:
Customer Accounts:
Billed $ 2,768;110
Less allowances:
Uncollectible accounts ( 200,000)
Sales discounts ( 183,604)
Total billed 2,384,506
Unbilled, net 4,172.945
Total customer accounts 6,557,451
Other Accounts:
Merchandise sales 125,701
MMWEC Flush 107,879
Liens and other 296,215
Total other accounts 529,795
246
Total net receivables $7,087,
5. Prepaid Expenses
Prepaid expenses consist of the following:
Insurances $ 266,383
Purchase power 154,886
PASNY prepayment fund 332,076
Total $ 753.345
6. Inve_ ntory
Inventory is comprised of supplies and materials at June 30, 2009, and is
valued using the average cost method.
7. Investment in Associated Companies
Under agreements with the New England Hydro-Transmission Electric Com-
pany, Inc. (NEH) and the New England Hydro-Transmission Corporation
(NHH), the Department has made the following advances to fund its equity
requirements for the Hydro-Quebec Phase II interconnection. The Depart-
ment is carrying its investment at cost, reduced by shares repurchased.
The Department's equity position in the Project is less than one-half of one .
percent.
55
L4
Investment in associated companies consists of the following, at June 30,
2009:
New England Hydro-Transmission
Electric Company, Inc. $ 46,153
New England Hydro-Transmission Corporation 76,238
Total $ 122,391
8. Capital Assets
The following is a summary of fiscal year 2009
activity in
capital assets (in
thousands):
Beginning
Ending
Balance Increases
Decreases
Balance
Capital assets, being depreciated:
Structures and improvements
$ 13,393
$ 119
$ -
$ 13,512
Equipment and furnishings
22,620
5,624
( 388)
27,856
Infrastructure
68,465
2.946
L _Z38)
70,673
Total capital assets, being depreciated
104,478
8,689
(1,126)
112,041
Less accumulated depreciation for:
Structures and improvements
( 6,132)
( 383)
-
( 6,515)
Equipment and furnishings
( 16,012)
( 720)
358
( 16,374)
Infrastructure
24,457)
(LM)
728
.2( 5,762)
Total accumulated depreciation
46,601)
3( ,136)
1,086
48,651
Total capital assets, being depreciated, net 57,877
5,553
( 40)
63,390
Capital assets, not being depreciated:
Land
1,266
-
-
1,266
Construction in progress
1,836
Total capital assets, not being depreciated
3,102
-
1( ,836)
1,266
Capital assets, net
$ 60,979
$ 5.553
$ (1876)
$ 64,656
9. Other Assets
This balance consists primarily of costs associated with the Department's
bonding, which are being amortized over the life of the bonds.
10. Accounts Payable
Accounts payable represent fiscal 2009 expenses that were paid after June 30,
2009.
010,
56
11. Customer Deposits
This balance represents deposits received from customers that are held in
escrow.
12. Customer Advances for Construction
This balance represents deposits received from vendors in advance for work to
be performed by the Department. The Department recognizes these deposits
as revenue after the work has been completed.
13. Accrued Liabilities
Accrued liabilities consist of the following at June 30, 2009:
Accrued payroll
Accrued interest
Other
Total
14. Bonds Payable
Bonds payable consist of the following at June 30, 2009:
Bonds issued December 1, 1999, in the
amount of $ 5,500,000. Principal is payable
annually on September 1 commencing 2000
and continuing to September 1, 2009. Interest
is payable semiannually on September 1 and
March 1 at 4.5% for five years with rates"
thereafter ranging from 4.55% to 4.85%.
Total Bonds Payable
Less: Current installments of bonds payable
Total Long-Term Bonds Payable
$ 175,161
13,186
69,653
$ 258.000
$ 550,000
55( 0,000)
The future payments required on the long-term debt are as follows:
P b2 al Interest ''Total .
2010 $ 550.000 $ 13.337 $ 563.337
37
Total $550,00 0 $ 13.337 $563,3
57
-x, 6 8 .
The following summarizes activity in bonds payable for the year ended
June 30, 2009:,
Balance Balance Less Long-Term
07/01/08 Maturities 06/30/09 Current Portion
$1,100.00 0 $ 55( 0.000) $ 550,000 $ 55( 0.000) $ -
15. Accrued Employee Compensated Absences
Department employees are granted sick leave in varying amounts. Upon
retirement, termination, or death, employees are compensated for unused
sick leave (subject to certain limitations) at their then current rates of pay.
16. Restricted Net Assets
The proprietary fund financial statements report restricted net assets when ext-
ernal constraints are placed on net assets. Specifically, restricted net assets
represent depreciation fund reserves, which are restricted for future capital asset
purchases.
17. Participation in Massachusetts Municipal Wholesale Electric
Company
The Town of Reading, acting through its Light Department, is a participant in
certain Projects of the Massachusetts Municipal Wholesale Electric Company
(MMWEC).
MMWEC is a public corporation and a political subdivision of the Common-
wealth of Massachusetts, created as a means to develop a bulk power supply
for its Members and other utilities. MMWEC is authorized to construct, own,
or purchase ownership interests in, and to issue revenue bonds to finance,
electric facilities (Projects). MMWEC has acquired ownership interests in
electric facilities operated by other entities and also owns and operates its
own electric facilities. MMWEC sells all of the capability (Project Capability)
of each of its Projects to its Members and other utilities (Project Participants)
under Power Sales Agreements (PSAs). Among other things, the PSAs
require each Project Participant to pay its pro rata share of MMWEC's costs
related to the Project, which costs include debt service on the revenue bonds
issued by MMWEC to finance the Project, plus 10% of MMWEC's debt ser-
vice to be paid into a Reserve and Contingency Fund. In addition, should a
Project Participant fail to make any payment when due, other Project Partici-
pants of that Project may be required to increase (step-up) their payments
and correspondingly their Participant's share of that Project's Project Capa-
bility to an additional amount not to exceed 25% of their original Participant's
58
share of that Project's Project Capability. Project Participants have coven-
anted to fix, revise, and collect rates at least sufficient to meet their obliga-
tions under the PSAs.
MMWEC has issued separate issues of revenue bonds for each of its eight
Projects, which are payable solely from, and secured solely by, the reve-
nues derived from the Project to which the bonds relate, plus available funds
pledged under MMWEC's Amended and Restated General Bond Resolution
(GBR) with respect to the bonds of that Project. The MMWEC revenues
derived from each Project are used solely to provide for the payment of the
bonds of any bond issue relating to such Project and to pay MMWEC's cost
of owning and operating such Project and are not used to provide for the
payment of the bonds of any bond issue relating to any other Project.
MMWEC operates the Stony Brook Intermediate Project and the Stony
Brook Peaking Project, both fossil-fueled power plants. MMWEC has a 3.7%
interest in the W.F. Wyman Unit No. 4 plant, which is operated and owned by
its majority owner, FPL Energy Wyman IV, LLC, an indirect subsidiary of
NextEra Energy Resources LLC (formerly FPL Energy LLC), and a 4.8%
ownership interest in the Millstone Unit 3 nuclear unit, operated by Dominion
Nuclear Connecticut, Inc. (DNCI), the majority owner and an indirect subsidi-
ary of Dominion Resources, Inc. DNCI also owns and operates the Millstone
Unit 2 nuclear unit. The operating license for the Millstone Unit 3 nuclear unit
extends to November 25, 2045.
A substantial portion of MMWEC's plant investment and financing program
is an 11.6% ownership interest in the Seabrook Station nuclear generating
unit operated by NextEra Energy Seabrook, LLC (NextEra Seabrook)
(formerly FPL Energy Seabrook LLC), the majority owner and an indirect
subsidiary of NextEra Energy Resources LLC (formerly FPL Energy LLC).
The operating license for Seabrook Station extends to March, 2030. NextEra
Seabrook has stated its intention to request an extension of the Seabrook
Station operating license beyond March 2030.
Pursuant to the PSAs, the MMWEC Seabrook and Millstone Project Partici-
pants are liable for their proportionate share of the costs associated with
decommissioning the plants, which costs.are being funded through monthly
Project billings. Also the Project Participants are liable for their proportionate
share of the uninsured costs of a nuclear incident that might be imposed
under the Price-Anderson Act (Act). Originally enacted in 1957, the Act has
been renewed several times. In July 2005, as part of the Energy Policy Act
of 2005, Congress extended the Act until the end of 2025.
Reading Municipal Light Department has entered into PSAs and Power Pur-
chase Agreements (PPAs) with MMWEC. Under both the PSAs and PPAs,
the Department is required to make certain payments to MMWEC payable
solely from Department revenues. Under the PSAs, each Participant is
unconditionally obligated to make all payments due to MMWEC, whether
59
1d
or not the Project(s) is completed or operating, and notwithstanding the
suspension or interruption of the output of the Project(s).
MMWEC is involved in various legal actions. Seven municipal light depart-
ments that are Participants under PSAs with MMWEC have submitted a
demand for arbitration of a dispute relating to charges under the PSAs.
After the July 1, 2009 principal payment, total capital expenditures for
MMWEC's Projects amounted to $ 1,553,974,000, of which $ 112,010,000
represents the amount associated with the Department's share of Project
Capability of the Projects in which. it participates, although such amount is
not allocated to the Department.. MMWEC's debt outstanding for the Projects
includes Power Supply System Revenue Bonds totaling $ 570,245,000, of
which $ 30,338,000 is associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is
not allocated to the Department. After the July 1, 2009 principal payment,
MMWEC's total future debt service requirement on outstanding bonds issued
for the Projects is $ 614,973,000, of which $ 31,695,000 is anticipated to be
billed to the Department in the future. -
The estimated aggregate amount of Reading Municipal Light Department's
required payments under the PSAs and PPAs, exclusive of the Reserve and
Contingency Fund billings, to MMWEC at June 30, 2009 and estimated for
future years is shown below.
Annual Costs
For years ended June 30, 2010
$ 4,867,000
2011
4,674,000
2012
4,657,000
2013
4,702,000
2014
4,154, 000
2015 - 2019
8,641,000
00
Total $31,695,0
In addition, under the PSA's, the Department is required to pay to MMWEC
its share of the Operation and Maintenance (O&M) costs of the Projects
in which it participates. The Department's total O&M costs including debt
service under the PSAs were $ 16,070,000 and $ 15,726,000 for the years
ended June 30, 2009 and 2008, respectively.
18. Risk Management
The government is exposed to various risks of loss related to torts; theft
of, damage to and destruction of assets; errors and omissions; and natural
disasters for which the government carries commercial insurance. There
were no significant reductions in insurance coverage from the previous year
60
~ I I
and have been no material settlements in excess of coverage in any of the
past four fiscal years.
19. Leases
Related Party Transaction - Property Sub-Lease
The Department is sub-leasing facilities to the Reading Massachusetts
Town Employees Federal Credit Union. The original sub-lease agreement
commenced in December 2000 and ended in November 2005. A new agree-
ment, which extended the lease through November 30, 2008, was signed on
December 1, 2005. An additional amendment, effective December 1, 2008,
extends the lease through November 30, 2011. The-following is the future
minimum rental income for the years ending June 30:
2010
$ 8,712
2011
8,712
2012
3,630
Total
54
$21.0
Other Income - Property Sub-Lease
The Department is sub-leasing facilities to Reading Community Television
Inc. The original sub-lease agreement commenced in March 2000 and
ended in November 2008. An amendment effective December 1, 2008
extends the lease through November 30, 2009. Under the terms of the new
agreement, the future minimum rental income for the year ending June 30,
2010 is $ 8,000.
20. Power Authority of the State of New York (PASNY) Credit
The Department purchases power from the Power Authority of the State
of New York (PASNY). This power, which is generated at Niagara, is less
expensive than most other purchased power. Federal regulations require
that only residential customers get the benefit of this lower cost. The reduc-
tion in residential customer bills, compared to non-residential customers is
known as the PASNY credit.
Prior to fiscal year 2009, the Department accounted for this credit as a pur-
chase power operating expense. In fiscal year 2009, the Department began
accounting for this credit as a contra-revenue, similar to its accounting treat-
ment of other customer discounts and refunds.
I ~ ) 1
61
TOWN OF READING, MASSACHUSETTS
SCHEDULE OF FUNDING PROGRESS
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2009
(Unaudited)
(Amounts Expressed in thousands)
Employees' Retirement System
Actuarial
UAA as
Accrued
a Percent-
Actuarial
Liability
Unfunded
age of
Actuarial
Value of
(AAL) -
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
b-a
a/b
(c)
b-a /c
06130/00
$
54,076
$
78,486
$
24,410
68.9%
$
15,798
154.5%
06/30/01
$
286
58
$
82,550
$
24,264
70.6%
$
16,129
150.4%
06/30/02
$
,
60,933
$
86,888
$
25,955
70.1%
$
16,855
154.0%
06/30103
$
62,897
$
91,302
$
28,405
68.9%
$
16,734
169.7%
06/30104
$
66,850
$
95,961
$
29,111
69.7%
$
17,487
166.5%
06/30/05
$
71,468
$
102,153
$
30,685
70.0%
$
18,048
170.0%
06/30106
$
77,151
$
106,238
$
29,087
72.6%
$
18,860
154.2%
06/30/07
$
84,784
$
112,012
$
27,228
75.7%
$
19,313
141.0%
Other Post-Employment Benefits
Actuarial
Actuarial
Accrued
Unfunded
Actuarial
Value of
Liability
AAL
Funded
Valuation
Assets
(AAL)
(UAAL)
Ratio
.
Date
(a)
(b)
b-a
a/b
06/30/08
$ -
$ 60,022,927
$ 60,022,927
0.0%
See Independent Auditor's Report
UAAL as
a Percent-
age of
Covered
Covered
Payroll
Payroll
(c
b-a /c
NIA
N/A
62
TOWN OF READING, MASSACHUSETTS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
Special Revenue Funds
Federal
State
Revolving
Receipts
Grants
Grants
Funds
Reserved
ASSETS
Cash and short-term investments
$ 2,905 $
14,920
$ 2,058,792
$ 2,916,096
Investments
-
-
Receivables:
Intergovernmental
80,196
154,726
102,938
-
Total Assets
$ 83,101 $
169,646
$ 2,161,730
$ 2,916,096
LIABILITIES AND FUND BALANCE
Liabilities: -
Warrants payable
$ 21,236 $
45,233
$ 48,684
$ -
Accrued liabilities
-
-
7,703
-
Deferred revenue
-
444
-
"
Retainage payable
-
-
Total Liabilities
21,236
45,677
56,387
-
Fund Balances:
Reserved for:
Perpetual (nonexpendable)
Permanent funds
-
-
-
Unreserved:
Undesignated, reported in:
Special revenue funds
61,865
123,969
2,105,343
2,916,096
Capital project funds
-
-
-
Permanent funds
-
-
Total Fund Balance
61,865
123,969
2,105,343
2,916,096
Total Liabilities and
Fund Balance
$ 83,101 $
169,646
$ 2,161,730
$ 2,916,096
64
Special Revenue Funds
Gifts and Trust Reserve
Donations Funds Funds Subtotals
$ 277,648 $ - $ 146,273 $ 5,416,634
7,747,946 - 7,747,946
- _ - 337,860
$ 277,648 $ 7,747,946 $ 146,273 $ 13,502,440
$ 2,432 $ 383 $ - $ 117,968
7,703
_ 444
2,432 383 - 126,115
- 2,374,097 - 2,374,097
275,216 - 146,273 5,628,762
5,373,466 - 5,373,466
275,216 7,747,563 146,273 13,376,325
$ 277,648 $ 7,747,946 $ 146,273 $ 13,502,440
(continued)
u
65
TOWN OF READING, MASSACHUSETTS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
(continued)
Capital Project Funds
Total
Town
School
Nonmajor
Capital
Capital
Governmental
Proiect Funds
Project Funds
Subtotals
Funds
ASSETS
Cash and short-term investments
$ 1,128,149
$ 1,868,043
$ 2,996,192
$ 8,412,826
-
-
7,747,946
Investments
-
Receivables:
-
-
337,860
Intergovernmental
-
l Assets
t
T
$ 1,128,149
$ 1,868,043
$ 2,996,192
$ 16,498,632
a
o
LIABILITIES AND FUND BALANCE
Liabilities:
Warrants payable
$ 57,207
$ 42,435
$ 99,642
$ 217,610
-
-
7,703
Accrued liabilities
-
-
444
Deferred revenue
Retainage payable
-
-
1,104,104
1,104,104
1,104,104
Total Liabilities
57,207
1,146,539
1,203,746
1,329,861
Fund Balances:
Reserved for:
Perpetual (nonexpendable)
-
2,374,097
permanent funds
-
Unreserved:
Undesignated, reported in:
-
5,628,762
Special revenue funds
Capital project funds
-
1,070,942
721,504
-
1,792,446
1,792,446
Permanent funds
-
-
-
5,373,466
Total Fund Balance
1,070,942
721,504
1,792,446
15,168,771
Total Liabilities and
Fund Balance
$ 1,128,149
$ 1,868,043
$ 2,996,192
$ 16,498,632
4 "t I I
66
TOWN OF READING, MASSACHUSETTS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
Special Revenue Funds
Federal
State
Revolving
. Receipts
Grants
Grants
Funds
Reserved
Revenues:
Departmental $
-
$ -
$ 3,696,603
$ 49,164
intergovernmental
1,527,130
2,979,867
143,648
-
investment income
-
-
-
22
750
43,876
720,644
Other
-
Total Revenues
1,527,130
2,979,867
3,841,023
813,684
Expenditures:
Current:
General government
-
86,206
120,084
-
Public safety
118,401
91,056
635,973
-
Education
1,556,661
2,381,275
1,998,334
-
Public works
-
562,563
376
-
Health and human services
110,311
85,688
15,270
-
Culture and recreation
7,252
31,804
420,528
625
Total Expenditures
1,792,625
3,238,592
3,190,565
625
Excess (deficiency) of revenues over
(under) expenditures
(265,495),
(258,725)
650,458
813,059
Other Financing Sources (Uses):
Issuance of bonds
-
-
-
Transfers in
-
-
-
-
(125,052)
(387,665)
Transfers out
Total Other Financing Sources (Uses)
-
-
(125,052)
(387,665)
Change in fund balances
(265,495)
(258,725)
525,406
425,394
Fund Balances, beginning of year, as restated
327,360
382,694
1,579,937
2,490,702
Fund Balances, end of year $
61,865
$ 123,969
$ 2,105,343
$ 2,916,096
68
Special Revenue Funds
Gifts and
Trust
Reserve
Donations
Funds
Funds
Subtotals
$ _
$ _
$ -
$ 3,745,767
_
_
-
4,650,645
-
93,627
6,357
143,882
153,107
1,830
-
876,331
153,107
95,457
6,357
9,416,625
1,206
-
-
207,496
10,519
-
-
855,949
135,376
-
5,950
6,077,596
74
105,000
-
668,013
13,165
99,002
-
323,436
76,940
2,061
-
539,210
237,280
206,063
5,950
8,671,700
(84,173)
(110,606)
407
744,925
(120,000)
-
-
(632,717)
(120,000)
-
(632,717)
(204,173)
(110,606)
407
112,208
479,389
7,858,169
145,866
13,264,117
$ 275,216
$ 7,747,563
$ 146,273
$ 13,376,325
(continued)
69
TOWN OF READING, MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF NET ASSETS
JUNE 30, 2009
Business-Type Activities
Enterprise Funds
ASSETS
Current:
Cash and short-term investments
User fees, net of allowance for uncollectibles
Inventory
Other assets
Total current assets
Noncurrent:
Capital assets being depreciated, net
Capital assets not being depreciated
Total noncurrent assets
TOTAL ASSETS
LIABILITIES
Current:
Warrants payable
Accrued liabilities
Other current liabilities
Current portion of long-term liabilities:
Bonds payable
Total current liabilities
Noncurrent:
Bonds payable, net of current portion
Accrued employee benefits
OPEB liability
TOTAL LIABILITIES
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
TOTAL NET ASSETS
See notes to financial statements.
Landfill
Sewer Closure and Stormwater
Fund Postclosure Management. Total
$ . 1,644,640
$ 85,644 $ 799,562
$ 2,529,846
1,270,883
- 79,982
1,350,865
1,456
- -
1,456
-
- 189
189
2,916,979
85,644 879,733
3,882,356
5,727,214
- -
5,727,214
61,761
- -
61,761
5,788,975
- -
5,788,975
8,705,954
85,644 879,733
9,671,331
40,624
7,007
6,394
54,025
2 998 .
-
510
3,508
-
78,637
-
78,637
181,501
-
-
181,501
225,123
85,644
6,904
317,671
176,598
-
-
176,598
6,500
-
14,522
21,022
20,415
-
-
20,415
428,636
85,644
21,426
535,706
5,746,584
-
-
5,746,584
2,530,734
-
858,307
3,389,041
$ 8,277,318
$ -
$ 858,307
$ 9,135,625
4j"XI
71
TOWN OF READING, MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2009
Business-Type Activities
Enterprise Funds
Landfill
Sewer Closure and Stormwater
Fund Postclosure Management Total
Operating Revenues:
Charges for services $
4,699,499
Total Operating Revenues
4,699,499
Operating Expenses:
Personnel expenses
354,361
Non personnel expenses
94,186
Intergovernmental
3,555,143
Depreciation
326,148
Energy purchases
29,452
Total Operating Expenses
4,359,290
Operating Income (Loss)
340,209
Nonoperating Revenues (Expenses):
Investment income
1,501
Interest expense
(9,522)
Total Nonoperating Revenues (Expenses)
(8,021)
Income (Loss) Before Transfers
332,188
Transfers
Transfers (out)
(318,302)
Change in Net Assets
13,886
Net Assets at Beginning of Year
8,263,432
Net Assets at End of Year $
8,277,318
See notes to financial statements.
72
$ - $ 381,151
$ 5,080,650
- 381,151
5,080,650
- 71,993
426,354
35,382
129,568
_ -
3,555,143
_
326,148
_ -
29,452
- 107,375
4,466,665
- 273,776
613,985
- 1,756
3,257
(9,522
- 1,756
(6,265)
- 275,532
607,720
_ -
(318,302)
- 275,532
289,418
- 582,775
8,846,207
$ - $ 858,307
$ 9,135,625
TOWN OF READING, MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2009
Cash Flows From Operating Activities:
Receipts from customers and users
Payments to vendors and employees
Payments to other governments
Net Cash Provided By (Used For) Operating Activities
Cash Flows From Noncapital Financing Activit
Transfer out
Net Cash Provided By (Used For) Noncapital Financing Activities
Cash Flows From Capital and Related Financing Activities:
Acquisition of capital assets
Principal payments on bonds and notes
Interest expense
Net Cash (Used For) Capital and Related Financing Activities
Cash Flows From Investing Activities:
Investment income
Net Cash Provided By Investing Activities
Net Change in Cash and Short-Term Investments
Cash and Short Term Investments, Beginning of Year
Cash and Short Term Investments, End of Year
Reconciliation of Operating Income (Loss) to Net Cash
Provided By (Used For) Operating Activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation
Changes in assets and liabilities:
User fees receivables
Inventory and prepayments
Other assets
Warrants payable
Accrued liabilities
Other liabilities
OPEB liability
Net Cash Provided By (Used For) Operating Activities
See notes to financial statements.
Business-Type Activities
Enterp
rise Funds
Landfill
Sewer
Closure and
Stormwater
Fund
Postclosure
Management
Total
$ 4,730,192
$ -
$ 386,885
$ 5,117,077
(415,985)
(8,845)
(200,432)
(625,262)
(3,555,14L
-
(3,555,143)
759,064
(8,845)
186,453
936,672
(318,3.02)
-
(318,302)
(318,302)
(318,302)
(283,382)
(283,382)
(168,709)
-
(168,709)
(9,522)
t
(9,522)
(461,613)
-
(461,513)-
1,501
1,756
3,257
1,501
-
1,756
3,257
(19,350)
(8,845)
188,209
160,014
1,663,990
94,489
611,353
2,369,832
$ 1,644,640
$ 85,644
$ 799,562
$ 2,529,846
$ 340,209
$ -
$ 273,776
$ 613,985
326,148 326,148
30,693
-
51734
36,427
1,041
-
1,041
-
-
(189)
(189)
37,253
7,007
(93,378)
(49,118)
2,998
-
-
2,998
307
(15,852)
510
(15,035)
20,415
20,415
$ 759,064
$ 8,845
$ 186,453
$ 936,672
~ ~3t
t4 i
73
CENTRAL TRANSPORTATION PLANNING STAFF
4.9
Staff to the Boston Metropolitan Planning Organization
MEMORANDUM
(Draft)
DATE: December 30, 2009
TO: George J. Zambouras, Reading Town Engineer
Mike Karas, MassDOT Highway Division District 4
FROM: Chen-Yuan Wang and Efi Pagitsas
RE: Boston MPO Congested and High-Crash Intersections Study:
Main Street (Route 28) at Franklin Street in Reading
The Central Transportation Planning Staff (CTPS) has completed preliminary review of the
intersection of Main Street (Route 28) at Franklin Street in Reading. This memorandum
summarizes the existing conditions analyses and proposes improvement strategies for the
intersection.
Intersection Layout and Traffic Control
This signalized intersection is located in the northern section of Reading. Main Street, a four-lane
roadway running in the north-south direction, is the major street of the intersection. It is part of
State Route 28 that serves as a principal urban arterial for the region. Franklin Street, a two-lane
roadway running in the east-west direction, is the minor street of the intersection. It mainly
serves as a major collector for the town and is also used by cross-town traffic to connect Route,
28 and other destinations.
Figure 1 shows the intersection layout and the area nearby. No exclusive right- or left-turn lanes
are provided on all the approaches. In both directions of Main Street, the outside lane is shared
by the right-turn and through movements and the inside lane is shared by the left=turn and
through movements. In both directions of Franklin Street, all movements share a single lane.
The traffic signal is currently operated in three traffic phases: (1) southbound all movements (left
turns protected), (2) southbound/northbound all movements (left turns permitted), and (3)
eastbound/westbound all movements. Right turns on red are allowed on all four approaches. The
signal control also includes an exclusive pedestrian phase that lasts about 25 seconds. When
manually activated, the on-call pedestrian phase takes place after the southbound/northbound
traffic phase and all traffic movements are prohibited.
The land use in the vicinity of the intersection is mainly commercial. Two gas stations are
located individually at the northeast and southwest corners of the intersection. There is a poplar
ice cream and flower store with parking at the southeast corner. A retailer, Home Goods, and its
parking lot occupy the major area northwest of the intersection. The areas beyond the Route 28
corridor are mainly residential. A grade school, Wood End Elementary School, is located about a
mile west of this intersection.
State Transportation Building -Ten Park Plaza; Suite 2150 -Boston, MA 02116-3968 . (617) 973-7100 J ax (617) 973-8855 - TTY (617) 973-7089 . ctps@ctps.org
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Congested High-Crash
Intersections Study 3 December 30, 2009
Issues and Concerns
This intersection is busy with traffic but not particularly congested during peak periods. Field
observations indicate that most of the approaching traffic was able to pass the intersection within
a signal cycle in the AM peak hour. In the PM peak hour, traffic on both approaches of Franklin
Street is more congested and backs up at times. Traffic on Route 28 is heavy but not congested
during both peak hours.
Review of the intersection traffic volumes indicates that the intersection carries a relatively high
number of southbound left turns and westbound right turns. A large portion of the traffic may be
through-town traffic that uses Franklin Street and Haverhill Street to reach Route 28 in the north
and Route 128/1-95 (Interstate 95) in the south. This traffic pattern is not easy to alter as long as
the congested conditions at the I-93/1-95 interchange (Reading/Stoneham/Wobum) remain.
Safety is the main concern at this intersection. Review of recent crash data at the intersection
indicates that the intersection has a high number of crashes and a crash rate much higher than
other signalized intersections in the area (see the next section for detailed analyses.)
Lacking an exclusive turning lane, the southbound left turns operate in a lead-left
protected/permissive mode so that they do not block the through traffic in the same lane. This
operation preserves the intersection capacity but it frequently creates the "yellow trap" situation.
The situation can happen at this intersection when the left turners use the yellow change interval
but fail to pass the intersection before the opposite through traffic arrives or when they are'
confused with the green ball and fail to yield to the opposite through traffic. The situation can
lead to angle (or "T-bone") collisions between the left turns and their opposite through traffic or
cause collisions of/with other vehicles when they-try to avoid the first conflict. Further
discussions of this condition are included in a later section.
The available traffic counts indicate that Franklin Street carries high percentage of left turns in
both directions and heavy right turns in the westbound direction. Currently traffic operates in a
concurrent eastbound/westbound phase that has higher potential for traffic conflicts than a split
eastbound/westbound phase. The split phase is a safer operation but would consume more of the
traffic signal cycle than the concurrent phase. This alternative was examined in a later section of
this memorandum.
In summary, the issues and concerns for this intersection are:
• High number of crashes and high crash rate
• "Yellow trap" situation for the southbound left turns
• Traffic congestion on Franklin Street during the PM peak hour
• High percentage of turning movements on Franklin Street
Z4 _j"
Congested High-Crash
Intersections Study 4 December 30, 2009
Crash Data Analysis
Based on the 2004 - 2006 Massachusetts Registry of Motor Vehicles (RMV) crash data, Table 1
shows that on average 14 crashes occurred at the intersection each year. Although most of
crashes involved property damage only, nearly 30% of the total crashes resulted in personal
injuries. The crash types consist of nearly 70% angle collisions and 30% others. No crashes
involved pedestrians or bicycles. About one third of the total crashes occurred during peak
periods.
TABLE 1
Summary of RMV Crash Date (2004 - 2006)
Main Street at Franklin Street, Reading.
Statistics Period
2004
2005
2006
2004-06
Average
Total number of crashes
12
18
13
43
14
Property damage only
9
11
9
29
10
Severit
Personal injury
2
6
4
12
4
y
Fatality
0
0
0
0
0
Not reported
1
1
0
2
1'
Angle
9
10
10
29
10
T
e
i
lli
C
Rear-end
2
1
1
4
1
yp
on
s
o
Sideswipe
0
3
1
4
1
Head-on
0
2
1
3
1
Single. vehicle
0
0
0
0
0
Not reported
1
2
0
3
1
Crashes involving pedestrian(s)
0
0
0
0
0
Crashes involving c clist s
0
0
.0
0
0
Occurred during weekday peak eriods*
5
5
4
14
5
Wet or is avement conditions
1
4
2
7
2
Darldli hted conditions
2
5
3
10
3
* Peak Periods defined as 7:00 -10:00 AM and 3:30- 6:30 PM
Crash rate' is another effective tool to examine the relative safety of a particular location. Based
on the above data and the recently collected traffic volume data, the crash rate for this
intersection is calculated as 1.68 (see Appendix A for the calculation sheet). The rate is much
higher than the average rate for the signalized locations in MassDOT Highway Division District
4, which is estimated to be 0.78.2
Crash rates are resulted from the combination of crash frequency (crashes per year) and vehicle exposure (traffic
volumes or miles traveled). Crash rates are expressed as "crashes per million entering vehicles" for intersection
locations and as "crashes per million miles traveled" for roadway segments.
The average crash rates estimated by MassHighway are based upon a database that contains intersection crash
rates submitted to MassHighway as part of review process for an Environmental Impact Report or Functional
Design Report. The most recent average crash rates, which are updated on a nearly yearly basis, are based on all
entries in the database not just those entries made within the past year.
Zq -e q,
Congested High-Crash
Intersections Study
Intersection Capacity Analysis
December 30, 2009
CTPS collected turning movement counts at the intersection on May 27, 2009. The data were
recorded in 15-minute intervals for the peals traffic periods in the morning from 7:00 to 9:00 and
in the evening from 4:00 to 6:00. The intersection. carried about 1,850 vehicles in the morning
peak hour from 7:30 to 8:30 and about 2,100 vehicles in the evening peak hour from 5:00 to 6:00
(see Table 2). Two pedestrians and one pedestrian were observed during,the AM and PM peak
hour, respectively. No bicycles were observed to entering the intersection in the AM or PM peak
hour.
TABLE 2
AM and PM Peak Hour Traffic Volumes and Pedestrian Crossings
Main Street at Franklin Street, Reading
Street name
Main Street (Route 28)
Franklin Street
Direction
Northbound
Southbound
Eastbound
Westbound
Total
Turning movement
L
TH
RT
LT
TH
RT
LT
T14
RT
LT
TH
RT.
Turning volume
35
334
20
235
578
83
78
49
50
85
124
167
1838
AM
peals
Approach volume
389
896
177
376
hour
pedestrian crossing
0
2
0
0
2
Turningvolume
24
653
45
2
130
70
2 3
57
59
247
2106
PM
peak
Approach volume
722
233
363
hour
1 pedestrian crossing
0
1
0
0
1
Based on the turning movement counts and the signal timings measured on the site, the
intersection capacity was analyzed by using an intersection capacity analysis program, Synchro.3
The intersection is evaluated to operate at level of service (LOS) C in the morning peak hour and
at LOS D in the evening peak hour (see Table 3). Due to relatively high left turns, the eastbound
approach endures more delays than the other approaches in the evening peak hour. It was
evaluated as undesirable LOS F. The level of service criteria are_based on Highway Capacity
Manual 2000.4 Detailed analysis settings and results for both the AM and PM peak hour are
included in Appendix B.
Review of the "Yellow Trap" Situation
The "yellow trap" for the permitted/permissive left turns (PPLT) has been a difficult issue for
traffic engineers due to the complexity of the situation, which is often different from one
intersection to another. At this intersection, the southbound left turns operate in a lead-left
protected/permissive mode so that they will not frequently block the through traffic due to
lacking of an exclusive turning lane. The "trap" can happen when the left turners use the yellow
change interval but fail to pass the intersection before the opposite through traffic arrives or
Synchro is developed and distributed by Traff eware, Ltd. It can perform capacity analysis and traffic simulation
(when combined with SimTraffic) for an individual intersection or a series of intersections.
Transportation Research Board, Highway Capacity Manual 2000, Nation Research Council, Washington D. C.,
2000
Congested High-Crash
Intersections Study 6
TABLE 3
Intersection Capacity Analysis, Existing Conditions
Main Street at Franklin Street, Reading
December 30, 2009
Street name
Main Street (Route 28)
Franklin Street
Direction
Northbound
Southbound
Eastbound
Westbound
Overall
Turning movement
LT'
TH
RT
LT
TH
RT
LT
TH
RT
LT
TH
RT
AM
LOS
B
B
D
D
C
pcalc
hour
Delay(sec/veh)
18
20
37
47
27
PM
LOS
B
B
F
D
D
peak
hour
Delay (sec/veh)
19
20
135
41
36
when they are confused with the green ball and fail to yield to the opposite through traffic. The
situation can lead to angle (or "T-bone") collisions between the left turns and their opposite
through traffic or cause collisions of/with other vehicles when they try to avoid the first conflict.
Two factors that potentially contribute to the "yellow trap" situation at this intersection were
examined: (1) if the signal indication for the PPLT operation is appropriate and (2) if the yellow
clearance interval for the left turns is sufficient.
Currently a typical WTCD5 5-section cluster signal head is installed over the southbound inside
lane, with a regulatory sign indicating "left turn yield on green ball" (see Figure 2). The
Figure 2
Traffic Signal Head over the Southbound Left-Turn/Through Lane
Main Street at Franklin Street, Reading
LEFT'TURN
YIELD
M GREEN
77 744
s Manuel for Uniform Traffic Control Device, Federal Highway Administration, U.S. Department of Transportation,
Chapter 4D. Traffic Control Signal Features, 2003 edition with revision numbers 1 and 2 incorporated, December
2007.
Congested High-Crash
Intersections Study 7 December 30, 2009
allowable movements on the lane are indicated by three consecutive faces: (1) a green ball and a
green arrow indicating the through and the protected left-turn movements, (2) a green ball and a
yellow arrow indicating continuation of through movements and ending of the protected left-turn
phase, and (3) a green ball only indicating protected through movements and permissive left-turn
movements.
The display sequence appears to be appropriate with the available equipments and have no
conflicts with the displays on the opposite approach. The typical MUTCD 5-section signal head
is commonly used but is gradually challenged by practitioners in that left-turners sometimes
incorrectly interpret the meaning of a green ball as a protected phase for them. A recent NCHRP
stud Y6 found that a flashing yellow arrow PPLT display to be equal or superior to the existing 5-
section display based on traffic simulation tests of drivers' responses. Figure 3 shows the
flashing yellow arrow indication in 3- or 4-section displays for an exclusive. PPLT operation.
Figure 3
Exclusive Flashing Yellow Arrow Display Faces
(Source: NCURP Report 493)
2. 3.
' 4.
Indicates Flashing
As the PPLT movements are not operated in an exclusive lane at this intersection, the flashing
yellow arrow display has to be used alongside with a typical 3-ball signal head designated for the
through traffic. However, we do not recommend this display for this intersection at this moment.
The flashing yellow arrow display is still considered experimental by the MUTCD and by the
state. Further -studies are needed for the state to evaluate its effectiveness in terms of the overall .
intersection efficiency and safety and how it will work with the many existing signal controllers.
A review of the existing signal timing plan, indicates that the yellow clearance time for the
southbound left turns may need to be extended.
Based on the commonly used ITE (Institute of Traffic Engineers) formula, the yellow clearance
interval consists of reaction time, deceleration time, and time to clear the intersection.? Table 4
National Cooperative Highway Research Program (NCHRP) Report 493, Evaluation of Traffic signal Displays for
Protected/Permissive Left-Turn Control, Transportation Research Board, Washington D.C., 2003
Traffic Signal Clearance Interval, Philip J. Tarnoff, ITE Journal, April 2004
4 k-7
Congested High-Crash
Intersections Study 8 December 30, 2009
shows estimation of the desirable yellow clearance time for the left turns under an average
approaching speed ranging from 20 MPH (miles per hour) to 50 MPH8 for the southbound left
turn at this intersection. The assumptions for the calculation are:
Reaction time = 1 second
Average deceleration between 10 feet/sec.2 and 15 feet/sec.2
Distance to clear the intersection = 60 feet (from the southbound stop line, passing a
crosswalk and two northbound lanes in a curvature, to Franklin Street) + 20 feet (a
vehicle length)
The estimation indicates that a total of 4.5 or 5 seconds yellow clearance is desirable for the .
southbound left turns to safely clear or stop before the intersection. Currently the left turns have
2 seconds of yellow change interval (indicated by a steady yellow arrow) for reaction and
deceleration but no time to clear the intersection because the opposite northbound green balls are
shown as soon as the yellow arrow ends. We propose to extend the reaction and deceleration
time from 2 seconds to 3 seconds and to add a time of 2 seconds to clear the intersection. The
yellow arrow can indicate the yellow change interval but the time to clear the intersection can
only be achieved by delaying the indication of the opposite northbound green balls for 2 seconds
(as the typical 5-section signal head does not have a red arrow).
Table 4
Estimation of Yellow Clearance Intervals with a Range of Approach Speeds
Main Street at Franklin Street, Reading
Approach speed (MPH)
20
25
30
35
40
45
50
Reaction and deceleration time'
2.5
2.8
3.2
3.6
3.9
4.3
4.7
Reaction and deceleration time'
2.0
2.2
2.5
2.7
3.0
3.2
3.4
Time to clear the intersection
2.7
2.2
1.8
1.6
1.4
1.2
1.1
Total yellow clearance time'
5.2
5.0
5.0
5.1
5.3
5.5
5.8
Total yellow clearance time' .
43T
4.4
4.3
43
4.3
4.4
4.5
Note: 1. Average Deceleration= 10 feet/sec.2
2. Average Deceleration = 15 feet/sec?
Improvement Alternative Analyses
This section examines four traffic signal and geometric design strategies to improve the safety
and operation of this intersection. The analyses were performed progressively from simple to
more involved modifications for the four improvement alternatives. The intersection capacity
was evaluated using Synchro optimization and simulation software. Common to all four
alternatives is the proposed modification for the southbound left-turn clearance time, extending
the yellow change interval from 2 to 3 seconds and adding 2 seconds clearance interval, and
maintaining the existing total cycle length.
The post speed on Route 28 in the area is 35 MPH. The speed range represents different approaching conditions
from "stop and go" to "fly by the intersection".
Congested High-Crash
Intersections Study 9 December 30, 2009
1. Retime Traffic Signal with Existing Phasing Sequence and Intersection Geometry
The unbalanced levels of service for the major street (Main Street: LOS B) and the minor street
(Franklin Street: LOS D or F) in the existing conditions indicate that there may be room for
improving the intersection operation by shifting some green time from Main Street to Franklin
Street.
Synchro tests using the existing traffic volumes and intersection geometry indicate that the
intersection is able to operate at acceptable levels of service at all approaches by shifting 2(6)
seconds green time from the northbound/southbound phase to the eastbound/westbound phase in
the AM (PM) peak hour. This simple signal retiming alternative maintains the same overall
intersection LOS and average delay in the AM peak hour and improves the overall LOS from D
to C with reduced average delay by 6 seconds in the PM peak hour (see Table 5).
With the modified yellow change clearance time for the southbound left turns, the "yellow trap"
situation is expected to be relieved somewhat. Details of the signal settings and analysis results
for both peak hours are included in Appendix C.
2. Change EB/WB Operation to Split-Phase under Existing Geometry
As mentioned, Franklin Street carries high percentage of left turns in both directions. Under such
conditions, an eastbound/westbound (EB/WB) split phase is a safer operation but would require
an increased share of the overall traffic signal cycle than the existing concurrent phase.
Synchro tests of the EB/WB split phase with the existing signal cycle, traffic, and geometric
conditions indicate that the intersection would operate at LOS C in the AM peak hour and LOS
D in the PM peak hour (see Table 5). All the approaches under this alternative would endure
more delays than Alternative l (concurrent EB/WB traffic phase), especially .in the PM peak
hour.
The split phase operation would potentially reduce the through and turning traffic conflicts on
Franklin Street. On the other hand, it would increase delays on all the approaches of the
intersection. Especially in the PM peak hour, the approaches on Franklin Street would operate at
undesirable LOS F and LOS E and both the approaches of Main Street would endure an increase
of 15 to 20 seconds in delay. Details of the signal settings and analysis results for both peals
hours are included in Appendix D.
Add a WB Right-Turn Lane and Retime Signal with Existing Phasing Sequence
The high percentage of right turns on the westbound approach (about 45% in the AM and 70% in
the PM peak hour) indicate that adding an exclusive lane for that movement would increase
significantly the capacity for the intersection. Based on the State Roadway Inventory file,
Franklin Street has a right-of-way (ROW) of 40 feet in the intersection vicinity. Currently, the
westbound approach pavement is about 23 feet wide; it may be feasible to construct a 10-foot
turning lane within the ROW of the westbound approach.
14 QC(
Congested High-Crash
Intersections Study 10 December 30, 2009
TABLE 5
Intersection Capacity Analysis of Alternative Improvements
Existing Traffic Volumes
Main Street at Franldin Street, Reading
Street name
Main Street (Route 28)
Franklin Street .
Overall
Approach
Northbound
Southbound
Eastbound
Westbound
Existing
13/18
B/20
D/37
D/47
C/27
Alternative 1
C/22
C/21
C/34
D/42
C/27
AM
peak
Alternative 2
C/23
C/30
D/41
E/56
C/35
hour
Alternative 3
B/16
13/16
D/48
C/26
C/21
Alternative 4
C/22
C/21
D/47
D/35
C/27
Existing
B/19
B/20
F/135
DI
D/36
Alternative 1
C/27
C/27
D/51
C/29
C/30
PM
peak
Alternative 2
D/37
D/40
F/87
E/70
D/49
our
Alternative 3
13/19
B/17
D/47
B/14
C/21
Alternative 4
C/21
B/18
D/50
C/32
C/25
Note performance measures: Level of Service (A to F)/Average Delay (seconds per vehicle)
Alternative 1: Retime Traffic Signal with Existing Phasing Sequence and Intersection Geometry
Alternative 2: Change EB/ B Operation to Split-Phase under Existing Geometry
Alternative 3: Add a WB Right-Turn Lane and Retime Signal with Existing Phasing Sequence
Alternative 4: Add a Lane on Both EBMB Approaches and Change EB/WB Operation to Split-Phase
With the addition of an exclusive lane, the existing signal phasing plan can overlap a protected
westbound right-turn phase with the southbound only phase. Synchro tests of the proposed
modifications indicate that the intersection would operate at LOS C and all approaches would
operate at an acceptable LOS with insignificant delays in both the AM and PM peak hours (see
Table 5). Details of the signal settings and analysis results for both peak hours are included in
Appendix E.
4. Add a Lane on Both EB/WB Approaches and Change EB/WB Operation to Split-Phase
Tests of Alternative 2 show that the EB/WB split phase would operate at LOS E or F on Franklin
Street. In order to maintain desirable LOS for all the approaches, the intersection would need to
be expanded.
Different layouts of the expanded Franklin Street were tested. A amongst them, the combination
of an exclusive right-turn lane with a through/left-turn shared lane for the westbound approach,
and an exclusive left-turn lane with a through/right-turn shared lane yielded acceptable results.
Synchro tests of the EB/WB split phase with the proposed modifications indicate that the
intersection would operate at LOS C and all approaches would operate at an acceptable LOS in
both the AM and PM peak hours (see Table 5). Details of the signal settings and analysis results
for both peak hours are included in Appendix F.
Congested High-Crash
Intersections Study 11 December 30, 2009
In addition, a future year scenario of 15% growth over a 20-year planning horizon was tested for
each of the four alternatives. The growth assumption is based on a review of the traffic
projections at the intersection from the recent Boston MPO.transportation planning model. A
higher number than the existing conditions of pedestrian calls (five in each peak hour) was
assumed in the future year analysis.
Results from Synchro tests of the alternatives with the projected traffic growth are summarized
in Table 6. As shown, Alterative 1 would operate at acceptable LOS C in the AM peals hour and
LOS D in PM peak hour. Alternative 2 would operate at an undesirable LOS F in both the AM
and PM peak hour. Alternative 3 would operate at LOS C in both the AM and PM peak hour
with insignificant delays. Alternative 4 would operate at LOS C in both the AM and PM peak
hour with insignificant overall delays and noticeable delays on the eastbound approach. Details
of the Synchro results for all the alternatives under the projected traffic conditions are included
in Appendices G, H, I, and J.
TABLE 6
Intersection Capacity Analysis-of Alternative Improvements
Projected 2030 Traffic Growth
Main Street at Franklin Street, Reading
Street name
Main Street (Route 28)
Franklin Street
Overall
Approach
Northbound
Southbound
Eastbound
Westbound
Existing
13/19
C/26
D/49
E/73
D/36
AM
Alterative 1
C/23
C/30
D/41
E/56
C/35
.
peals
Alternative 2
C/34
E/67
E/58
F/175
F/81
hour
Alternative3
C/22
C/22
D/50
C/25
C/25
Alternative 4
C/23
C/25.
E/61
D/41
C/31
Existing
C/21
C/29
F/261
E/60
E/57
Alternative 1
D/37
D/37
E/78
C/33
D/41
PM
peak
Alternative 2
E/60
F/82
E/71
F/131
F/82
hour
Alternative 3
C/25
C/25
D/50
13/14
C/26
Alternative 4
C122
C/22
E/62
D/38
C/29
Note Performance measures: Level of Service (A to F)/Average Delay (seconds per vehicle)
Alternative 1: Retime Traffic Signal with Existing Phasing Sequence and Intersection Geometry
Alternative 2: Change EB/ B Operation to Split-Phase under Existing Geometry
Alternative 3: Add a WB Right-Turn Lane and Retime Signal with Existing Phasing Sequence
Alternative 4: Add a Lane on Both EBMB Approaches and Change EB/ B Operation to Split-Phase
Improvement Recommendations and Discussions
The above analyses indicate that the operation and safety of the intersection can be improved by
signal retiming (Alternative 1). Changing EB/WB operation to split-phase with the existing
geometry (Alternative 2) is not. effective as the intersection would operate at undesirable LOS F
under the projected future traffic conditions. Adding a WB right-turn lane and retiming signal
with the existing phasing sequence (Alternative 3) is the most effective option as the intersection
4 j2, I I
Congested High-Crash
Intersections Study 12 December 30, 2009
would operate at desirable levels of service with minimal delays even under the projected traffic
conditions.
Alternative 4, adding a lane on both EB/WB approaches and changing EB/WB operation to split-
phase, would assist the intersection to operate at desirable overall LOS but with noticeable
delays on the eastbound approach (projected future traffic conditions). It would also cost more
than other alternatives. The crash data do not indicate a high proportion of crashes involving
EB/WB traffic. As such, we do not recommend Alternative 4 at this moment unless unforeseen
major traffic growth or pattern changes occur in the future.
We propose a two-stage improvement strategy for this intersection. In the short term, we propose
to retime the signal with the existing intersection layout as follows:
• Extend the southbound yellow change interval from 2 seconds to 3 seconds
• Delay the indication of the northbound green balls for 2 seconds
• In the, AM peak period, shift 2 seconds of green time from the northbound/southbound to
the eastbound/westbound phase
• In the PM peak period, shift 6 seconds of green time from the northbound/southbound to
the eastbound/westbound phase
• Retain the existing total cycle length
The proposed retiming is expected to relieve the "yellow trap" situation for the southbound left
turns and to reduce delays for the eastbound/westbound traffic. As a result, the overall
intersection safety and operations would be improved. However, the traffic conditions and crash
data at the intersection should be monitored and reviewed after the signal retiming.
In the long term, if the intersection operations do not improve and the crash rates remain high,
adding a WB right-turn lane and retiming the signal with the existing phasing sequence
(Alternative 3) can be considered. The State Roadway Inventory file shows that Franklin Street
has a ROW of about 40 feet, which is somewhat tight for an additional lane and sidewalks on
both sides. The potential westbound reconfiguration could consist of two 10-foot approaching
lanes, one 12-foot receiving lane, and two 4-foot sidewalks. In summary, the improvement
alternative includes the following modifications:
• Add an exclusive right-turn lane (desirable length: 200 feet) on the westbound approach
• Overlap a WB right-turn protected phase to the southbound only phase
• Install a MUTCD 5-section signal head containing right-turn green and yellow arrows
over the additional westbound lane
Based on the projected future traffic conditions, the alternative is expected to improve operations
and safety at the intersection. Certainly, the intersection should be reevaluated with the future
updated traffic and crash data, when this option is pursued at the functional design stage.
L4 G
ASEW
Chairman Ben Tefoya
Reading Board of Selectmen
Peter Hechenbleikner
Town Manager
Town Hall
16 Lowell Street
Reading, MA 01867
Ref: T0233
7J
65 GLENN STREET I LAWRENCE, MA 01843
TEL 97B.794.1 792 FAX 978.794.1 793
WWW.TECMASS.COM
RE: Safe Routes to School Infrastructure Program -
Preliminary Assessment for the Parker Middle School
Reading, Massachusetts
Dear Chairman Tefoya and Mr. Hechenbleikner:
a
oh
va
0-
We are pleased to transmit the enclosed five (5) copies of the Preliminary Assessment for
the Parker Middle School as part of the Safe Routes to School Infrastructure Program,
managed by the Massachusetts Department of Transportation (MassDOT). Parker Middle
School was assessed as part of the SRTS project to identify recommendations for
improvements to the walking and bicycling environment near the school.
We developed our findings and recommendations based on a review of information
submitted as well as meetings and conversations with Parker Middle School staff and
parents, discussions with Town staff, and our field visits. We previously reviewed our
preliminary recommendations with Mr. George Zambouras, Town Engineer, who concurred
with our findings and recommendations. The enclosed assessment report includes detailed
graphics to support our. comprehensive description of the proposed recommendations.
We request that you review the assessment report's recommendations with other Town staff
and Board members for consistency with other previously identified Town projects and
municipal standards. We also ask that you take into consideration comments previously
provided by teachers and concerned parents. In order to maintain progress on these
recommendations and facilitate their implementation, we ask that you return any comments
to us within four (4) weeks. After your review, MassDOT will evaluate the candidate
improvements for federal SRTS funding in comparison to similar projects from other schools.
Should the recommended project be advanced by MassDOT for design and construction, the
Town will be responsible for facilitating project implementation by holding a public hearing
on the proposal; preparing a letter of support for the project that includes a commitment that
the Town will secure any right-of-way or easements required to build the project; and
agreeing to maintain the project after construction is complete.
During a subsequent design process, SRTS Team will prepare right-of-way plans depicting
the proposed improvements for the Town's use in securing the use of property to allow a
federally funded construction project to proceed. The Town will be responsible for securing
PLAN I PERMIT I DESIGN I CONSTRUCT
February 12, 2010
`4
Chairman Ben Tefoya & Mr. Peter Hechenbleikner
February 12, 2010
Page 2 of 2
right-of-way takings, if required, and any necessary easements, including all costs associated
with appraisals, legal document preparation (including drafting an article for Town Meeting),
and compensatory fees for land acquisition. Based on our experience, the land necessary
for sidewalk projects is generally limited to a narrow sliver at the back of sidewalk. With the
Town's successful acquisition of property for this public use, all design and construction
costs for the project will be 100 percent federally funded.
We are excited to be working with the Parker Middle School and the Town of Reading to
advance this important project into the final design stage and, ultimately, construction.
If you have any questions regarding our assessment or the process for implementing the
improvements, please do not hesitate to contact me at (978) 794-1792 x145. I look
forward to working with you on this very important project.
Sincerely,
TEC, Inc.
Kevin R. Dandrade, PE, PTOE
Principal/ Project Manager
cc: George Zambouras, Town Engineer
Douglas Lyons, Principal, Parker Middle School
Catherine O'Connell, Assistant Principal, Parker Middle School
Christina Copeland, Health & Wellness Teacher, Parker Middle School
James P. Cope, MassDOT
Donna Smallwood, MassRIDES
. QI
® T:\T0233\2 Reading\Parker Middle\Prelim\Docs\Parker Transmittal Letter_2-12-10.doc
Preliminary Assessment
Massachusetts Department of Transportation (MassDOT)
Office of Transportation Planning
Safe Routes to School Infrastructure Program
Parker Middle School
Reading, Massachusetts
December 30, 2009 ,
TEC, Inc.
Planners Collaborative, Inc.
Von Grossmann & Company
Prepared by:
Parl<er Middle School- Reading, Massachusetts - Preliminary Assessment Report
1 Introduction
This Safe Routes to School (SRTS) Infrastructure Assessment for the Parker Middle
School in Reading, Massachusetts is a summary of potential improvements that are
intended to make walking and bicycling safer and more attractive modes for children
traveling to and from school. This assessment includes recommendations that can either
be implemented as part of the Massachusetts SRTS Infrastructure Program or pursued by
the Town of Reading as part of a future project. This document describes the SRTS
program, the travel characteristics of the Parker School student population, and the results
of the preliminary assessment effort.
1.1 The SRTS Program
The federally-funded SRTS program is administered through the Massachusetts
Department of Transportation (MassDOT). According to the federal legislation' that
created SRTS, the program's purpose is:
(1) To enable and encourage children, including those with disabilities, to walk and
bicycle to school;
(2) To make bicycling and walking to school a safer and more appealing
transportation alternative, thereby encouraging a healthy and active lifestyle from
an early age; and
(3) To facilitate the planning, development, and implementation of projects and
activities that will improve safety and reduce traffic, fuel consumption, and air
pollution in the vicinity of schools.
In Massachusetts, the program is composed of two parts: an education / encouragement
component and an infrastructure improvement component. MassRIDES, the
Commonwealth's travel option service, delivers the in-school education and
encouragement program for MassDOT.
The infrastructure improvement program is delivered by a consultant team led by TEC,
Inc. under contract with MassDOT. The TEC, Inc. consultant team evaluates walking
and bicycling access conditions at the school; identifies potential infrastructure projects
that would improve pedestrian and bicycle access; and develops designs for a selected set
of high priority pedestrian and bicycle access improvements.
I The federal-aid Safe Routes to School Program (SRTS Program) was created by Section 1404 of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), signed
into Public Law (P.L. 109-59) on August 10, 2005. The SRTS Program provides federal-aid highway
funds to state Departments of Transportation (DOTS) in accordance with a formula specified in the
legislation. These fiords are available for infrastructure and non-infrastructure projects and to administer
state Safe Routes to'School programs that benefit elementary and middle school children in grades K-8.
The federal-aid SRTS Program is administered by the Federal Highway Administration (FHWA) Office of
Safety.
Parlor Middle School- Reading. Massnelrusetts - Preliminary Assessment Report
1.2 The School Assessment Program
Over the course of a two-year period, MassDOT, through the TEC Team, is conducting
assessments at up to 40 schools throughout the Commonwealth. The first round of
assessments started in April 2008 and covered thirteen schools. Ten schools were
assessed in the second round beginning in November 2008. Twelve additional
assessments were conducted as part of round three beginning in April 2009.
In order to receive an infrastructure assessment, a school must be a participant in the
education and encouragement program managed by MassRIDES, and the school must
complete an assessment request. Each assessment request must be accompanied by a
municipal letter of support naming a municipal liaison for future coordination. To date,
infrastructure assessments have been limited to one per community.
1.3. Use of Assessment Recommendations
Each assessment identifies measures that could improve bicycling and walking
conditions. The assessment includes preliminary evaluation of feasibility, safety benefits,
likelihood of increasing walking and bicycling, and cost. Based on this preliminary
evaluation, several potential infrastructure projects are developed in greater detail for
review with the school and municipal stakeholders. After this review, final
implementation recommendations are made.
2 Parker Diddle School
The Parker Middle School is located on Temple Street in Reading, MA. Figure 1 shows
the school's relationship to the network of arterial roadways; these roadways carry
heavier traffic volumes that can be a barrier to walking and bicycling. Figure '2 shows the
school's relationship to the streets within a one-mile radius of the school. Both graphics
are based on Geographic Information System (GIS) files maintained by MassDOT's
Office of Transportation Planning.
This assessment focuses on the streets immediately adjacent to the school grounds .
because these are the streets that carry the greatest volume of school-related walking and
bicycling students.
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~-assac
I)arlcer Middle School- Reading. Massachusetts - Preliminary Assessment Report
2.1 Completed SRTS School Assessment Request
(As submitted by the Town)
School Information
Municipality Information
School
Name
Walter S. Parker Middle School
Municipality
Name
Town of Reading
Street
Address
45 Temple Street
Reading, M A O 1867
Mailing
Address
16 Lowell Street
Reading, MAO 1867
Contact
Name
Chris Copeland
Contact Name
George Zambouras, P.E.
Tel. No.
781-944-1236 x374
Tel. No.
781-942-6683
Email
ccopeland(aD- read ing.k12
Email
gzambouras@ci.reading.ma.us
Start Time:
7:50am
Dismissal Time:
2:30pm
School Po ulation Information
Grade
K
1
2
3
4
5
6
7
8
Sum
Number of
183
196
208
586
Students
Actual number
residing within 1
-
-
-
-
-
-
170
183
198
551
mile of school
Estimated
number who
100
100
100
300*
currently
walk/bicycle
*Varies AM/PM
Are students bused within 1 mile of the school? Explain if yes. No
Describe the potential for increasing walking and bicycling to the school
Middle school students strive to gain independence from their parents. Approximately 95% of our
students live within 1 mile of the school. A great deal of our students walk and bicycle to school,
with more pedestrians in the afternoon than morning. Many of our elementary schools participate
in the Safe Routes to School program, Reading students have become accustomed to the
message about walking to school.
Its true that during the middle school years, adolescents can become lazy, asking their parents to
drive them to school. As a Healthy Choices School, we have been encouraging students to
exercise more and eat a balanced diet. We would love to see the amount of students expand.
Parker is proud of the fact that we are the first Massachusetts middle school to be participating in
Safe Routes to School. We have participated in the surveys since 2007-2008. Reading's
Department of Public Works and the Reading Police Department have worked diligently to
construct sidewalks for our school community.
4,Q"
/J-0
Parker Middle School— Reading, Massachusetts - Preliminary Assessment Report
Describe the problems your school faces regarding safe routes to your school
Students walking to school have difficulty crossing the road in two high traffic areas: Woburn
Street and Summer Avenue.
At the intersection of Woburn Street and Temple Street, it is difficult to cross in the morning and
afternoon because of heavy traffic and a long wait time at the crosswalk. Motorists are not aware
of the presence of school children who walk along Woburn Street to get to the intersection, which
makes the walk unpleasant. Parents do not feel this is safe enough.
Drivers accelerate on the straightaway as they leave the downtown area. Drivers entering the
downtown area accelerate going downhill and have a wider lane than the other direction. There
is a curve in the road before going downhill.
At the intersection of Summer Avenue and Woburn Street, the traffic doesn't pay attention to the
students even though there is a traffic light.
Parker [diddle School- Reading. Massachusetts Prelin3inary Assessment Report
2.2 Participation in SRTS Education and Encouragement
Parker Middle School joined the MA Safe Routes to School program in June 2007. The
program successfully encourages and educates students and parents about the benefits of
walking and bicycling through information.distribution, special events, weekly walking
days, and surveying and monitoring results.
2.3 Transportation Improvements in Reading
The Engineering Department in the Town of Reading oversees the planning, surveying,
design, construction and maintenance of all municipal roadway and sidewalk projects.
George Zambouras, P.E, the Town Engineer, indicated that as of 2009, the annual budget
for sidewalk projects was approximately $25,000 and was used for minor repairs and
upgrades of the Town's worst sidewalks. Mr. Zambouras was designated,as the Reading
municipal liaison to the SRTS program.
New ADA-compliant ramps and short sections of connecting sidewalk were installed at
the intersection of Washington Street and Prescott Street in August 2009. The Mineral
Street overpass over the MBTA commuter rail was replaced in 1998.
2.4 Field Visit
The TEC Team held a preliminary assessment meeting at the Parker Middle School on
December 9, 2008. Dismissal observation and a field. visit took place on June 8, 2009
and July 20, 2009, respectively.
Attendee:
Re resentin :
Michael Lee
Reading Police Department, Safe Officer
Doug Lyons
Principal, Parker Middle School
George Zambouras, P.E.
Town of Reading, Engineer
Courtney Croteau
MassRIDES
Christine Morrow
Mass-IDES
Bill Schwartz
Planners Collaborative
Jennifer Williams
TEC, Inc.
Two driveways serve Parker Middle School with the main entrance and parking area on
Temple Street and the secondary entrance on King Street. An emergency access road
encircles the school.
Parker Middle School and Coolidge Middle School are the only two middle schools in
Reading. The school district boundary separating these schools is shown on Figure 3
along with the location of crosswalks, crossing guards, traffic signals and sidewalks
within approximately one mile of the Parker Middle School.
n___ 7 _..e
,a,,1;,,,,,t.,,,,.19, , Reading Town Line
No Sidewalk
{ Existing Crosswalk
m
Crossing Guard
4-Way Stop
Masstrthusetts
outer
School
District Boundary
1 1- 1"1 1 MBTA Commuter Rail
Fully Signalized Intersection 3 .
t~)
Note: Streets not marked were not
observed during the site visit.
Figure 3: Existing Conditions Around Parker School
8010 gautns
chool `Infrastructure Team
1°=1400'
KEY
Sidewalk
Parker Middle School-- [leading. Massachusetts Preliminary Assessment Report
2.5 General Observations
School Arrival and Dismissal
• Temple Street between Summer Avenue and the Parker Middle School driveway is
restricted to one-way travel on school days, between 7:00 and 8:30 a.m. and 2:00 and
3:30 p.m. Two signs indicating this restriction are located at the intersection of
Temple Street and Summer Avenue. There are also school zone speed limit signs on
Temple Street that face the direction of restricted traffic.
• The pedestrian signal at Woburn Street and Summer Avenue does not appear to be
used frequently. During the field visit, pedestrians were observed traveling south on
Summer Avenue and continuing straight across Woburn Street without using the
pedestrian push-button or waiting for the pedestrian phase of the signal.
• The TEC Team observed very little bicycle~traffic. Those observed were using the
sidewalk.
• Parents waiting to pick up their children were parked on the southeast side of Woburn
Street near Temple Street, directly in front of "No Parking" signs.
• Buses had difficulty maneuvering on Temple Street due to vehicles parked on either
side of the street.
Sidewalk and Pathway Infrastructure
• The sidewalks on the east side of the school driveway are approximately 6 feet wide
with 1-foot to 2-foot worn dirt paths along either side, indicating the. sidewalks are of
insufficient width.
• There is a crosswalk across Temple Street at the end of the school driveway., but no
crosswalk across the driveway. Very few students were observed using the crosswalk
across Temple Street, choosing instead to cross the driveway and use the sidewalk on
the north side of Temple Street to get to Summer Avenue.
• There is no curbing on the north side of Temple Street between Summer Avenue and
the school driveway. A 2-foot to 3-foot wide grass panel slopes approximately 1-foot
to the street level. There is a closed drainage system on Temple Street to collect
storm water.
• There is no stop sign at the intersection of Temple Street and Summer Avenue.
Hedges on the southeast corner block sight distance for vehicles turning left out of
Temple Street, forcing them to cross the existing crosswalk to check for oncoming
traffic.
• The surface of Temple Street is in poor condition. When Temple Street is
reconstructed in the future, new curbing and sidewalks should be included in the
proj ect.
• At the intersection of Temple Street and Woburn Street, there is no school zone or
standard pedestrian signs or markings. The nearest marked crosswalk is
approximately 125 feet to the west in front of the church.
4,Q, ~L q ~
Parker Middle School-- Reading. [Massachusetts Preliminary Assessment Report
® Sidewalks at the intersection of Summer Avenue and Woburn Street are in good
condition. Pedestrians were observed traveling south on Summer Avenue and
crossing Woburn Street at the traffic signal.
Crossing Guards
® According to the crossing guard on duty at the intersection of Temple Street and
Woburn Street, approximately 20 pedestrians cross in the morning and approximately
40 pedestrians cross in the afternoon.
® There are 10 crossing guards stationed in the vicinity of the Parker Middle School.
See Figure 3 for crossing guard locations.
State and Municipal Construction Projects
® MassDOT is currently in the design phase for the reconstruction of West Street from
the Woburn City line to the intersection of Summer Avenue and Willow Street. In
addition to complete road reconstruction, the project will include new sidewalks,
granite curbing, drainage improvements and signal upgrades at the intersections of
West Street and Summer Avenue and Willow Street and Woburn Street and Summer
Avenue. MassDOT approved the 75% design plans for this project in April 2009.
The sidewalk and traffic control improvements included in this project will address
infrastructure needs for West Street that were identified by the TEC Team.
2.6 School/Municipality-Identified Needs/Opportunities
During the field visit, participants reported the following pedestrian issues:
® Students have difficulty crossing at the intersection of Woburn Street and Temple
Street due to high traffic volumes and speed. In addition, vehicles are not yielding to
pedestrians at this intersection. Parents do not feel the walk along Woburn Street and
the crossing at this intersection are safe.
® Despite the presence of a traffic light at the intersection of Summer Avenue and
Woburn Street, students still have a difficult time crossing at this location.
qJQ/
Parker Middle School- Redding. Massachusetts - Pre] iminary Assessment Report
3 recommendations for Improvement
As a result of the needs identified in the assessment request, the field assessment, and
input from the Town of Reading, the TEC Team has identified a number of potential
improvements to the pedestrian and bicycling environment in the vicinity of the Parker
Middle School. These are "illustrated graphically in Figure 4 and can be divided into
those improvements that are recommended for potential implementation through the
SRTS program and those that are recommended for implementation through other
funding sources.
3.1 Primary Recommendations
The following improvements are recommended as potential infrastructure projects as part.
of the SRTS Infrastructure program:
Recommendation l: Construct Missing Sections of Sidewalk on Various Streets
The TEC Team recommends constructing sidewalks in the following locations:
]a - Construct Sidewalk at Temple Street/ Woburn Street
The concrete sidewalk would be a minimum of 5 feet wide with a 2-foot wide grass panel
to be constructed adjacent to new vertical granite curbing. In addition, ADA-compliant
ramps, MUTCD-compliant signs, and crosswalks would also be installed at the
intersection of Temple Street and Woburn Street to connect this project into the existing
infrastructure and better identify the school crossing.
lb - Construct Sidewalk on Washington Street
This new 5-foot wide concrete sidewalk on the west side of Washington Street, between
Woburn Street and Prescott Street would be constructed with vertical granite curbing for
approximately 500 feet. In addition, ADA-compliant ramps, MUTCD-compliant signs,
and crosswalks would also be installed at the intersection of Washington Street and
Woburn. Street.
1c - Construct Sidewalk on Sunnyside Avenue
This new 5-foot wide asphalt sidewalk would be constructed with bituminous berm for
the approximately 650 feet on the east side of Sunnyside Avenue between Prescott Street
and Fairview Avenue. In addition, ADA-compliant ramps, MUTCD-compliant signs,
and crosswalks would also be installed at the intersections of Sunnyside Avenue and
Prescott Street and at Sunnyside Avenue and Fairview Avenue.
These improvements combined have an estimated cost of approximately $350,000. See
Figures 5a and 5b for more detail.
KEY PROPOSED IMPROVEMENT
"Potential SRTS Infrastructure Project Recommendations
1 a, b, c: Construct Missing Sections of Sidewalk on Various Streets
High
Recommendations to be Pursued,,byTown or through Other Funding
Sources
Construct Sidewalk on Vine Street and Middlesex Avenue
2
High
3 Modify Pedestrian Signal Phasing at Woburn Street &
High
Summer Avenue
4 Construct Sidewalk on Howard Street
Moderate
State / Municipal Project in Design
Construct Sidewalk and Improve Crossings on West Street
Moderate
4.. Irv .~.-1..~,...
MaSSacfiusetts Safe Routes to S.ehooi`I'nfr'astructure Team
MOBILITY BENEFIT
High
High
Moderate
Low
High
Dn of keCo,mme1
Moderate
Moderate
Low
High
High
Jdtlolls
npomas
60
NIT
Mass
S
N.T.S. 1 b - Washington Street
Figure 5a: Recommendation 1 - Construct Missing Sections of Sidewalk on Various Streets
1 o5c nm
setts Safe Routes to School Infrastructure Team
n--- A7 -t 41
RECOMMENDED SCOPE OF WORK
AND CONCEPTUAL COST ESTIMATE:
0
R1-1 ® W16-7p
5' WIDE ASPHALT SIDEWALK & BERM
(INCLUDING RAMPS) 1300 LF) _ $229,000
S1-1 W16-9p
SIGNS & STRIPING = $8,000
DRAINAGE MODIFICATIONS = $20,000
LANDSCAPING = $101000 r rF
S„TRAFFIC CONTROL = $25,000 ' ern may`r f }R
25% CONTINGENCY & ~ ~M z € ' Y z t `
CONSTRUCTION ENGINEERING $58,000
TOTAL =$350,000`t
Limit Parking to One Side
of Sunnyside Avenue
Remove Portion of -
Street and Construct
,hl
j
5'Asphalt Sidewalk s ter'°
w/ Granite Curbing--t kr~ k~' x
Install ADA`~
Accessible
Ramps (Typ.)
r f
and Crosswalks
n; i y di'[ t r~1 ~ x~i3
HFXr
z
z
I
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3 ` ~ aZ~e $ Cl_
Existing Conditions on Sunnyside Avenue
N.T.S 1 c - Sunnyside Avenue
actions of Sidewalk
Figure Sb: Recommendation 1 (Continued) - Construct Missing S
on Various Streets
nfrastructure'Team
lVlassaciitsetts Safe Routes to School
Parker Middle School-- Reading. Massachuse.as - Preliminary Assessment Report
3.2 Secondary Recommendations
The following are recommended improvements to be implemented by the Town or
utilizing other funding sources.
Recommendation 2: Construct Sidewalk on Vine Street and Middlesex Avenue
The TEC Team recommends reconstructing approximately 275 feet of sidewalk on the
northeast side of Vine Street and approximately. 500 feet of sidewalk on the northwest
side of Middlesex Avenue. Both sections of proposed sidewalk would be constructed
with cement concrete (minimum of 5 feet wide) with granite curbing. A minimum 2-foot
wide grass strip should be incorporated into the new sidewalk on Middlesex,Avenue to be
consistent with other sidewalks adjacent to the Middlesex Avenue / High Street
intersection. ADA-compliant ramps and a new crosswalk would also be installed at the
intersection of Vine Street and Middlesex Avenue. This would allow pedestrians,
including school-age children, to cross streets at 4-way stop-controlled intersections for
access to the library and a number of residences to the northeast.
Recommendation 3: Modify Pedestrian Signal Phasing at Woburn Street and
Summer Avenue
The TEC Team recommends that the Town of Reading modify the existing pedestrian
signal phasing at Woburn Street and Summer Avenue. This would consist of modifying
this signal to automatically call the pedestrian phase beginning 20 minutes prior to and
ending 10. minutes after school begins in the morning and again 10 minutes prior to and
20 minutes after school is dismissed in the afternoon. This automatic pedestrian phase
would be programmed into the signal only during months when school is in session. This
is a low-cost measure that the. Town could implement in the near term.
Recommendation 4: Construct Sidewalk on Howard Street
The TEC Team recommends constructing a sidewalk and ADA-compliant ramps on the
north side of Howard Street between West Street and Hillcrest Road. Constructing this
segment of sidewalk would not only provide a missing infrastructure link to Parker
Middle School, students traveling from the south. and west, but could benefit students
traveling to and from the Barrows Elementary School and the Joshua Eaton School as
well. It would be possible to construct this project concurrently with the West Street
project, but it is not necessary if funds are not available for both.
AC A
Parker Middle School:- Reading, Massachusetts - Preliminary Assessment Report
4 Next Steps
The recommendations included in this assessment will be fmalized upon receipt of any
comments from the Town of Reading and Parker Middle School staff. As part of the
public participation for the project, we strongly recommend that the Town involve project
abutters and neighborhood groups, through such activities as inviting them to a meeting
of the Board 'of Selectmen and soliciting public comment on these proposals. If the Town
requires assistance in presenting the recommendations, a representative of MassDOT or
the SRTS Infrastructure Team will be available to participate.
The issuance of this assessment does not guarantee that MassDOT will fund the
recommended improvements. Each school and community will, be evaluated for the
anticipated effectiveness of the proposed improvements; this may influence the selection,
deferral, or order of the various SRTS infrastructure projects in the program.
Once the SRTS infrastructure project is proposed and approved by MassDOT, a project
design will be advanced in coordination with MassDOT and the Town's municipal
liaison. This project design will require conformance with MassDOT's Project
Development and Design Guide, where applicable. The design work will require detailed
topographic ground survey and property line research to properly locate the proposed
infrastructure, and to design any required drainage modifications.
The survey and design process would identify any permanent and temporary easements
on private property that are needed to facilitate construction. The Town will be required
to secure all easements necessary to complete the project. The identification and legal
clearance of the public right-of-way must be completed prior to MassDOT's issuance of a
Right-of-Way Certificate, which is necessary to enable the use of federal funds through
the SRTS program. The SRTS Infrastructure Team will also submit a Categorical
Exclusion (CE) request, if appropriate, through MassDOT as part of the National
Environmental Policy Act (NEPA) permitting. These permitting elements require
coordination with the MassDOT's Office of Transportation Planning, Environmental
Section and Right-of-Way Bureau.
To quantify the benefits of the project, pre-construction and post-construction evaluations
will be undertaken by MassDOT.
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(
THE COMMONWEALTH OF MASSACHUSETTS
ALCOHOLIC BEVERAGES CONTROL COMMISSION
101600002
License Number
FORM 43
Reading
City/Town
Tvae.of Transaction (Please check all relevant transactions
( ) New License New Officer/Director
( ) Transfer of License Change of Location
{X) Change of Manager ( ) Alter Premises
( ) Transfer. of Stock
Meadow Brook Golf-Club Corp.
Name of licensee
Meadowa'Brook Golf Club
D/B/A
292 Grove Street
Address: Number
Annual
Manager
Reading,:MA 01867
Street Zip Code.
All Alcohol
Club
Annual or Seasonal Category: All Alcobol, Wine & Malt Type: Restaurant, Club, Package Store,
Inn, General on Premise, Etc.
Description of Licensed Premises:
Club House Grove'Street with entrance and exit by the same driveway to
Grove Street. u House as two
with deck'on main floor o•ff entrance to lounge
Application was filed: 2/22/2010 - 11:22
Date & time
2/15/2010
Date
( ) Pledge of License
( ) Pledge of Stock
Other
FID of Licensee
Advertised: •
' Date & Publication
Abutters Notified Yes No
Person to contact regarding this transaction:
Name: Dario L. Morelli
Address: Apple e , '.Mk 01,929
Phone 781-942=1334
Remarks:
The Local Licensing Authorities
By:
Remarks:
Dario L. Morelli
Alcoholic Beverages Control Commission
'Men Moriarty
Executive Director
d I,
PETITION FOR LICENSE TRANSACTION
THE COMMONWEALTH OF MASSACHUSETTS
I R - cacti l o I9
CHANGE OF LOCATION PLEDGE OF STOCK
PLEDGE OF LICENSE CHANGE OF CORPORATE NAME
CHANGE OF DB/A CHANGE OF MANAGER
CHANGE OF LICENSE TYPE CORDIALS AND LIQUEURS PERMIT
N
O
- C~
1'7 _ •
To the w
iV
Licensing Board for the N
The undersigned respectfully petition for
C~t~l nti t)
Signed
Form 997
Title
41,
r
G;
12
~~v
The Commonwealth of Massachusetts
The Alcoholic Beverages Control Commission
239 Causeway Street, Suite 200
Boston, MA 02114
Telephone: 617- 727-3040
FAX: 617- 727-1258
FORM A
LICENSEE PERSONAL INFORMATION SHEET
THIS FORM MUST BE COMPLETED FOR EACH:
A. NEW LICENSE APPLICANT
I/ B. APPOINTMENT OR CHANGE OF MANAGER
IN A CORPORATION
C. TRANSFER OF LICENSE (RETAIL ONLY-SEC. 12 & SEC. 15)
(Please check which transaction is the subject of an application accompanying this Form A.)
PI EASE TYPE OR PRINT ALL INFORMATION
ALL QUESTIONS MUST BE ANSWERED AND TELEPHONE NUMBERS PROVIDED OR
APPLICATION WILL NOT BE ACCEPTED.
1. LICENSEE NAME / /(3cc m Cr0I
(NAME AS IT WILL APPEAR ON THE-LICENSE)
2. NAME OF (PROPOSED) MANAGER ~ `l0 L Me X II,
!
3. SOCIAL SECURITY- NUMBER'
.3.'
-4. HOME (STREET) ADDRESS 1, r 34 d!,
5. AREA CODE AND TELEPHONE NUMBER (S): (Give both, your home telephone and a number at which
you can be reached during the day). _
DAYTIME# HOME# f/e
g. PLACE OF BIRTH: "
8. REGISTERED VOTER: _ YES NO 8A. WHERE?: L~ S✓'Px~
g. ARE YOU A U. S. CITIZEN: I/ YES NO
10. COURT AND DATE OF NATURALIZATION (IF APPLICABLE):
(Submit proof of citizenship and/or naturalization such as Voter's Certificate, Birth Certificate or
Naturalization Papers) ~x
(Over)
1
11. FATHER'S NAME: /'II 12. MOTHER'S MAIDEN NAME:
13. IDENTIFY YOUR CRIMINAL RECORD, (Massachusetts, Military, any other State or Federal): ANY OTHER
ARRESTOR APPEARANCE IN CRIMINAL COURT CHARGED WITH A CRIMINAL OFFENSE
REGARDLESS OF FINAL DISP?Q iTIION: (w~t14T CHEG__K~LTHFR Y OR N__a)
YES r
IF YES, PLEASE DESCRIBE OFFENSE (S) SPECIFIC CHARGE AND DISPOSITION (FINE,
PENALTY, ETC.)
14. PRIOR EXPERIENCE IN THE LIQUOR INDUSTRY:_YES NO
IF YES, PLEASE DESCRIBE:
V,
j"Viet y,
15
16.
17
FINANCIAL INTEREST, DIRECTOR INDIRECT, IN THI,3ft ANY OTHER LIQUOR LICENSE, PERMIT
OR CERTIFICATE: YES V' NO
IF YES, PLEASE DESCRIBE:
~G1 Gy f'' Ilti7 C._. ( d ~ ~ 1 I ~P~l.) 0~ `~t ~ ~ I' f
Employer, Address and if know-^n,
EMPLOYMENT FOR THE LAST TEN YEARS (Dates, Position,
Numbers):
HOURS PER WEEK TO BE SPENT ON THE LICENSED PREMISES:
18. 1 HEREBY SWEAR THAT UNDER THE PAINS AND PENALTIES OF PERJURY THAT THE
INFORMATION I HAVI=-= GIVEN IN THIS APPLICATION IS TRUE TO THE BEST OF MY KNOWLEDGE
AND BELIEF.
BY:
F:WILESIMAUREEN.1 WAUREEWORMS~FORMA. WPD
9199
R SIGNATURE
C • A{ Y
DATE
vl ~Let i
2
Motion passed 9-0
New Business
® Young Adult and Elder member categories will be subject to further membership
review.
2/25/2010 MOTION - THE BOARD AUTHORIZED THAT THE NAME OF
THE MANAGER ON THE MEADOW BROOK LIQUOR LICENSE BE
CHANGED FROM GEORGE COGAN TO DARIO L. MORELLI.
Move that the Board authorize that the name of the manager on the Meadow Brook
Liquor License be changed from George Cogan to Dario L. Morelli.
Motion passed 9-0.
0 The meeting was adjourned at 9:55 p.m.
Board of Selectmen Meeting
February 23, 2010
For ease of archiving, the order that items appear in these Minutes reflects the order in which
the items appeared on the agenda for that meeting, and are not necessarily the order in which
any item was taken up by the Board.
The workshop meeting convened at 7:00 p.m, in the Town Hall Conference Room, 16. Lowell
Street, Reading, Massachusetts. Present were Chairman Ben Tafoya, Secretary Camille
Anthony, Selectmen Richard Schubert and Stephen Goldy, Town Manager Peter
Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Fire Chief Greg
Burns, Library Director Ruth Urell, Town Engineer George Zambouras, and the following list of
interested parties: Tom Ryan, Bill Brown, Janet Baronian, Attorney Josh Latham, Anthony and
Carmen Cavallo, Cherie Dubois, Vicki Yablonsky, Kara Fratto.
Reports and Comments
Selectmen's Liaison Reports and Comments - Selectman Richard Schubert complimented the
Town Clerk on the guidelines and asked that we do a full process of publicizing. This would
include the website, Town Meeting Reports and any other venue possible.
Selectman Stephen Goldy noted that he had received a call from Mark Dickinson regarding the
Package Store License for Wine Nation. He told Mr. Dickinson that this was addressed in
Executive Session and there was no vote but a sense of the Board of Selectmen. Selectman
Goldy also asked about 885 Main Street and the application that had been submitted. The Town
Manager noted that it was an application for funding, and staff will be reporting on it.
Selectman Camille Anthony noted that she had attended a meeting at the Voke School regarding
the Mattera Cabin. She, Town Counsel Ellen Doucette, Town Planner Jean Delios, and the
Town Manager had met with regard to the LIP policy and it is coming along nicely. She asked
about the schedule for paving of Center Street, and the Town Manager noted that the Pavement
Management Program is being redone this Spring, and a presentation will be made to the Board
of Selectmen in May.
Chairman Ben Tafoya had no report but noted that he would be doing Office Hours at the next
meeting in lieu of Selectman Stephen Goldy.
Town Manager's Report
The Town Manager gave the following report:
• Local Elections 2010
o Withdraw nomination papers by March 2nd
o Register to vote by March 17th
o Election April 6th
o Annual Town Meeting starts April 26t'
01
Board of Selectmen Meeting - February 23, 2010 Page 2
• The Town has been advised that the 40R Downtown Smart Growth Zoning By-Law
approved by Town Meeting in November has been approved by the Attorney General. It was
previously approved by the Department of Housing and Community Development contingent
on AG approval. We will now proceed to requisition the payment of $350,000 which will be
held in a Stabilization Fund, and once we have our first building permits issued for a 40R
project in Downtown, the Town could then appropriate any of those funds for capital or
similar uses.
• Update re: Mattera Cabin and meeting with the Voke School.
• Wine Nation - The liquor store that wanted to locate in the former Linens `N Things site on
Walkers Brook Drive has withdrawn their appeal of the liquor license denial.
• Through the hard world of Mary Delai in the School Department, the Town has been awarded
an Energy Efficiency and Block Grant (EECBG) sub-grant in the amount of $150,000 for
Performance Contract. Funds for this award were made available by the American Recovery
and Reinvestment Act (ARRA) of 2009 through the U.S. Department of Energy's Energy
Efficiency and Conservation Block Grant Program.
• RCTV has moved - Their new address is 557 Main Street in Reading.
• The Board of Selectmen has received an action alert from the MMA. Do you want to
formally go on record with respect to the issue of Health Insurance Plan Design? I have
drafted letters from the Chairman to each of our legislators in the event that you would like to
do so.
• . We have taken bids on the Memorial Park project and are evaluating how much of the project
we will be able to do - we used add alternates to give us the most flexibility as. possible. The
base bid includes the skating ponds, the tennis courts and the basketball court.
• We have sold the Bancroft Avenue tennis court wind screens to the Town of Lexington for
$4,999.
• Reading is scheduled to receive Common Cause Massachusetts' 2010 e-Government Award
with Distinction on Tuesday, March 16th at 11:00 a.m. in Hearing Room A-1 at the State
House in Boston. You can find the award criteria at www.commoncause.org/e.govIO.
• MSBA Check presentation - March 4th at 11:00 a.m. at RMHS in front of the Memorial
Wall.
'Personnel and Appointments
Ad Hoc Municipal Building Committee - The Board considered applications for the ad hoc
Municipal Building Committee. The Volunteer Appointment Subcommittee had met yesterday
and had interviewed Kathleen Dugan and Jeffrey Struble. Selectman Richard Schubert reported
that the Volunteer Appointment Subcommittee recommended both applications.
On motion by Goldy seconded by Anthony, the Board of Selectmen voted to place the
following names into nomination for two positions on the ad hoc Municipal Build
Committee with terms exnirinLy December 31, 2010: Kathleen Dugan and Jeffrey Struble.
Each applicant received four votes and were appointed.
Discussion/Action Items
Review Warrant of Annual Town Meeting - The Town Manager noted that the main focus this
evening was to discuss the Annual Town Meeting Warrant.
Board of Selectmen Meeting - February 23, 2010 - Page 3
The Board discussed the following potential Articles:
Article 11 - Accepting Meals Tax - The Board of Selectmen had considerable discussion on the
potential for putting the meals tax back before Town Meeting. It was defeated by Town Meeting
at the Subsequent Town Meeting in November. The Town Manager indicated that the FY 2011
Budget that he has proposed to the Finance Committee does not depend on the meal tax:
Selectman Richard Schubert felt that this should be put on the Town Meeting Warrant and have
them review the issue.
Selectman Stephen Goldy felt that we are already raising fees and should not put this on the
Warrant. We should hold this as an option for when we have serious budget problems.
Chairman Ben Tafoya felt that he would. rather see the meal tax rather than some of the fee
increases that are included in the budget. He would like to talk to the School Committee, the
Finance Committee and other Boards, Committees and Commissions about this issue.
Selectman Camille Anthony felt that it should be discussed at a Financial Forum, and it should
be considered for next year. Therefore, the sense of the members of the Board of Selectmen
present is that the meals tax should not be included in the Warrant for the Annual Town Meeting.
Article 12 _ Approving 2011 Budget The Assistant Town Manager reviewed the Board's
consensus on various decision points for the FY 2011 Budget, and the Board's direction on those
matters.
Article 13 - Increasing Selected Exemptions - The Assistant Town Manager reviewed the
proposed Article on exemptions, and the Board of Assessor's intentions with regard to them.
Article 17 - Accept Gift Downtown Steering Committee - The Board discussed the Article for
the Downtown Steering Committee. All actions required to implement this will need to be
completed by Town Meeting.
Article 18 - Design of Building at Laurel Hill Cemetery - The Board discussed the potential
Article for designing of the building at the Laurel Hill Cemetery. Bill Brown noted that the
Cemetery Board had not voted to include this in the Annual Town Meeting Warrant. The Board
of Selectmen decided not to move this particular Article forward at this time.
Article 19 - Feasibility, Library Building - There was discussion with regard to an Article to
fund feasibility and concept design for renovations/expansion of the Reading Public Library.
Following discussion with representatives of the Library Board of Trustees, the consensus of the
Board of Selectmen was to not put this on as a separate article but to move to amend the 2010
Capital Improvements Program Budget to utilize $75,000 from the sale of real estate fund to start
the feasibility study, and to be ready to hire the necessary consultants immediately after Town
Meeting. This means putting an RFP out now. The cost of consulting would be $60,000 for an
architect, and $15,000 for a consultant to assist with the operations plan.
~~3
Board of Selectmen Meeting - February 23, 2010 - Page 4
Library Director Ruth Urell is going to be going to a. session on March 11th to understand more
about the process for applying to get on the State's list of projects. Her understanding is that an
initial letter of intent has to be submitted in the Fall, and then the formal application submitted in
January 2011 to get in the queue for these funds. The local funding would need to come from a
debt exclusion, and one of the questions would be the timing on special debt exclusion.
Article 21 - Sprinkleringof 4+ Unit Resident Buildings Fire Chief Greg Burns discussed an
Article requiring sprinklering of residential buildings with four or more units for new
construction and major rehabilitation. The Board of Selectmen felt strongly that this should be
included in the Warrant.
Article 22 - Boundaries for Birch Meadow - The boundaries for the Birch Meadow site will not
be ready for action at the Annual Town Meeting but should be ready for the Fall.
Article 23 - Junk Bylaw - The Board discussed the amendments to the Junk Bylaw. A request
was made to name it something different. It had to be clear that the purpose of this Article was
only to change the method of enforcement from criminal disposition to noncriminal disposition.
Article 24 - Easement to 767 Main Street - Town Engineer George Zambouras talked about the
easement for 767 Main Street for sewer purposes. The Board agreed to include this on the
Warrant. He also talked about the easements for drainage' on West Street, and the Board also
agreed to include this on the Warrant as long as all property owners sign off that they are in
agreement prior to Town Meeting.
Review of Venetian Moon Outdoor Dining - Anthony and Carmen Cavallo of the Venetian
Moon Restaurant and Attorney Josh Latham appeared to present a concept to the Board for
outdoor dining.. The concepts include rooftop dining and sidewalk dining, and both would be
for seasonal use only. The rooftop dining would not increase the seating capacity at the
restaurant. They would remove basement first floor seating and replace it with 40-50 seats on
the rooftop. The total seating capacity of Venetian Moon is now 175 seats.
The concept for the rooftop is a retractable awning, a chairlift for handicap accessibility, and
significant landscaping at the site. The Town Manager noted that the rooftop dining is not
something that can be tried and if not successful, can be suspended: The 'rooftop dining will
require a considerable investment on the part of the applicant, and this is a decision that will not
be easily rescinded. For the rooftop dining, there would be three approvals required: The Board
of Appeals, CPDC for site plan approval, and the Board of Selectmen for amending the liquor
license. There will be no bar in the rooftop area.
Selectman Richard Schubert asked about the hours of service, and the Cavallo's indicated that
they are not looking at cutting back the hours of service for the rooftop. The Town Manager
asked if there would be standing permitted, and the applicant indicated that there would be
seating only; i.e., there will be nobody in the rooftop area who is not seated. The Cavallo's
indicated that they would like not to be limited as to season. They could foresee use of the
rooftop dining during times of the year like the tree lighting ceremony. It was suggested that
there be no music or amplified sound.
Board of Selectmen Meeting - February 23, 2010 - Page 5
With regard to the sidewalk dining, it was suggested that the owners develop a detailed plan, and
actually do a mock up of how. the sidewalk dining would be set up.
The Board of Selectmen was generally amendable to both concepts. The Board will monitor the
hearings before the Board of Appeals and; CPDC, and utilize that information when making a
decision in the future on a formal application to amend the licensed premises. The Town
Manager will prepare a letter to the applicant outlining the Board's comments.
On motion by Goldy seconded by Schubert, the Board of Selectmen voted to adiourn the
meeting of February 23, 2010 at 9:31 p.m. by a vote of 4-0-0.
Respectfully submitted,
Secretary
Board of Selectmen Meeting
March 2, 2010
For ease of archiving, the order that items appear in these Minutes reflects the order in which
the items appeared on the agenda for that meeting, and are not necessarily the order in which
any item was taken up by the Board.
The meeting convened at 7:00 p.m. in the Selectmen's Meeting Room, 16 Lowell Street,
Reading, Massachusetts. Present were Chairman Ben Tafoya, Vice Chairman James
Bonazoli, Secretary Camille Anthony, Selectman Richard Schubert, Town Manager Peter
Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Library Director
Ruth Urell, and the following list of interested parties: Thomas Ryan, Kara Fratto, Michael
Palmer, Attorney Brad Latham.
Reports and Comments
Selectmen's Liaison Reports and Comments Selectman Richard Schubert asked for some
comment on the Town's health insurance program in light of the Boston Globe article on Sunday
and Monday regarding health care.
Selectman Camille Anthony asked whether the Town requires people over 65 who are Medicare
eligible to be enrolled in Medicare, and the Town Manager noted that has been a requirement in
Reading for a number of years. Selectman Anthony also attended the CPDC meeting on the Sign
Bylaw.
Vice Chairman James Bonazoli thanked the Economic Development Committee and CPDC for
their work on the Sign Bylaw. He attended a Cemetery Board of Trustees meeting, and the
Cemetery Board still feels that Laurel Hill is the best spot to locate a new cemetery garage.
Chairman Ben Tafoya asked that the draft Sign Bylaw and revisions to Section 6.3 of the Zoning
By-Law go on the website as soon as possible. The Town Manager noted that the Warrant
would be on the website by the end of the week.
Public Comment - Tom Ryan of 87 Dana Road noted that he had submitted a petition for Article
11 on the Warrant regarding snow plowing at churches.
Town Manager's Report
The Town Manager gave the following report:
• Update re: Mattera Cabin and meeting with the Voke School.
• Causeway Road site visit - March 26th. Board of Selectmen liaison.
• We have taken bids on the Memorial Park project and are evaluating how much of the project
we will be able to do - we used add alternates to give us the most flexibility as possible.
The base bid includes the skating ponds, the tennis courts and the basketball court.
• 885 Main Street 40B comments.
• Conservation Commission proposed amendment to Reading Wetland Regulations.
• Notice of Intent under Reading Conservation Bylaw - RMLD.
S~1
Board of Selectmen Meeting - March 2, 2010 - Page 2
• Reading is scheduled to receive Common Cause Massachusetts' 2010 e-Government Award
with Distinction on Tuesday, March 16th at l lam in Hearing Room A-1 at the State House in
Boston. You can find the award criteria at www.coininoncause.org/e og~vl0.
• Municipal Relief package - from Senator Richard Tisei's Office.
• MMA press release re: Health Insurance Plan Design.
• Board of Selectmen presence at FINCOM budget meetings:
o March 2nd
o March 17th - Tafoya
o March 24th
Assistant Town Manager's Report
The Assistant Town Manager reviewed a chart showing changes in the health insurance program
.since 2004, and outlining facts with regard to the program as follows:
• No volunteers including elected officials on Boards, Committees or Commissions are
paid or otherwise eligible to receive health insurance.
• Since 2005, annual increases in health insurance premiums have been below that seen
statewide in the public sector.
• FY 2006 Budget for health insurance was 8.6% of revenues. In FY 2010, it was 10.2%
of revenues.
• Premium change and plan design as collaboratively negotiated between the Public
Employee Committee and Town administration has yielded savings.
• The Town has received $276,000 in Part D reimbursements. Plan changes negotiated on
6/1/08 make the Town no longer eligible for these reimbursements.
• An independent consultant verified the lack of projected savings by the GAC option due
in large part by a poor HMO network coverage in this geographical area.
• The independent consultant recommended the shift to MIIA's three tiered product last
year which has good area coverage.
• The Town has saved over $400,000 for FY 2010 in health insurance due to the change
negotiated last Spring.
Discussion/Action Items
Highlights - Library - Library Director Ruth Urell and Lorraine Barry, Young Adults Librarian,
made an informative and entertaining presentation to the Board of Selectmen regarding activities
at the Library for young adults and adults.
Close Annual Town Meeting Warrant - The Town Manager reviewed the highlights of the
Warrant.
On motion by Schubert seconded by Bonazoli, the Board of Selectmen voted to close the
Warrant for the Annual Town Meeting to be held on April 26, 2010 at the Reading
Memorial High School, 62 Oakland Road, consisting of 29 Articles. The motion was
annroved by a vote of 4-0-0.
Hearing - Liquor License for Sam's Bistro - The Secretary read the public hearing notice for an
application for an all alcohol restaurant liquor license by Bistro Concepts Inc. d/b/a Sam's Bistro
at 107 Main Street. Present were Attorney Brad Latham and owner Michael Palmer.
V
Board of Selectmen Meeting - March 2, 2010 - Page 3
Attorney Latham reviewed the plans. He indicated that liquor is under security, locked, with
cameras, etc. The restaurant has 152 seats. A greater number of seats could perhaps have been
located in the second story but this was restricted by availability of parking. They have talked to
abutters about allowing employees or others to park on abutting properties but there are no
agreements in place at this time.
Michael Palmer reviewed the staffing and management at the site. He also indicated that they
are hoping to be opened in early May. Within 90 days of opening, all servers will be trained
with "Serve Safe." '
The Board members asked a number of questions which were well answered. The Chainnan
opened the hearing to the public and there was no public present. .
On motion by Schubert seconded by Bonazoli, the Board voted to close the hearing on an
application for an All Alcohol Restaurant Liquor License by Bistro Concepts, Inc. d/b/a
Sam's Bistro at 107 Main Street. The motion was approved by a vote of 4-0-0.
On motion by Schubert seconded by Anthony, the Board voted to approve an application
for an .All Alcohol Restaurant Liquor License by Bistro Concepts, Inc. d/b/a Sam's Bistro
at 107 Main Street subject to the following conditions: All Bylaws, Rules and Regulations
of the Town of Reading and of the Commonwealth of Massachusetts shall be followed, and
also subject to a satisfactory inspection of the establishment by the Town Manager prior to
opening. The motion was approved by a.vote of 4-0-0.
Review Amendment to Various Fees - The Board of Selectmen reviewed the potential
amendments to various fees as had been discussed as part of the budget process. With regard to
the Community Access fee, the Town Manager's recommendation was to keep this as a single
fee but increase the fee effective July 1, 2011. By the end of 2011, the Town may have in place
the necessary systems to be able to. offer a three tier fee: Commuter parking only, Compost
Center only or a combined. The staff will determine and come back to the Board with
information on the number of parking spaces at the Depot, and also some estimated costs of
operating the Depot parking and also for operating the Compost Center.
Vice Chairman James Bonazoli noted that one of the issues that the Board would have to deal
with is whether we should price this "product" based on cost or based on value.
With regard to other fees, the Town Manager noted that the Board of Selectmen fees would be
largely in the area of amending liquor license fees but also some of the other license fees like
Common Victualler licenses, etc., and increasing smoke detector fees and underground storage
fees for the analysis done by the Fire Department. It would be up to CPDC to establish site plan
waiver fees, and up to CPDC, the.Board of Health and the Conservation Commission to establish
re-inspection fees. All fees should be able to be in place by July 1 st. The Board asked that this
be scheduled for further discussion on a future Selectmen's meeting.
5~3
Board of Selectmen Meeting -March 2,2010= Page 4
Review Amended License for Outdoor Dining - The Town Manager presented a draft of a
revision to the Outdoor Dining Policy that would allow for service and sale of alcohol.
Selectman Camille Anthony asked how this would work, and whether we should consider
whether this is the message that we would want in the community.
Chairman Ben Tafoya noted that we already asked Town Meeting to amend the bylaw to allow
this and that we should move ahead. He also noted that in Boston, alcohol service is permitted
outdoors only with sales and service of food. He would suggest that this be done and included in
the policy.
Selectman Richard Schubert asked whether there would be an outdoor serving area, and the
sense from the Board was that practically there isn't room for that in the sidewalk areas. We
should also make it clear that outdoor dining is separate from the alcoholic license, and also that
the area for outdoor dining is to be restricted to only in front of an otherwise licensed
establishment. With these changes, a hearing will be scheduled for approval of this policy.
Review Draft Policy for Licensing of Junk Dealers - The Town Manager reviewed the policy.
.Questions were raised as to what other communities do, whether we should even have the bylaw
and whether the restrictions were onerous. The Town Manager will send a copy of the draft
policy to the potentially licensed establishments for their comment, and also get comment from
the Chief of Police prior to this discussion on this bylaw.
Approval of Minutes
On motion by Anthony seconded by Bonazoli, the Board of Selectmen approved the
minutes of February 9, 2010, as amended, by a vote of 4-0-0.
On motion-by Bonazoli seconded by Anthony, the Board of Selectmen voted to go into
Executive Session for the purpose of Approval of Minutes and strategy with respect to.
litigation not to come back into Open Session. On a roll call vote, all four members voted
in the affirmative and the motion was carried.
Respectfully submitted,
Secretary
5" U) I
Commonwealth of Massachusetts
. Department of the State Treasurer
" Alcoholic Beverages Control Commission
a
239 Causeway Street
Boston, MA 02114
Telephone: (617) 727-3040
Timothy P. Cahill Fax. (617) 727-1258 Kim S. Gainsboro
Peasurer andRecewer General NOTICE OF HEARING Chairman
Rare Hospitality International, Inc.
DBA Longhorn Steak House
39 Walkers Brook Drive
Reading, MA 01867 0
0
You are hereby notified that a hearing will be held by the Commission on:
9 '
Tuesday, April 6, 2010 at 10:30 a.m.
r.
at 239 Causeway Street, 1" floor, Boston, MA. to determine whether you have violated certain provisions=;f
Massachusetts General Laws, (M.G.L.) or Commission Regulations as follows: C
W
204 CMR 2.05 (2)- Permitting an illegality on the licensed premises, to wit: Ch.138, 534- Sale or
delivery of an alcoholic beverage to a person under twenty-one years of age (1 Count).
Date and Time of Alleged Violations: February 18, 2010 at approximately 6:25 p.m.
Hearings are held pursuant.to M.G.L. C.138, C.30A and 801 Code of Massachusetts Regulations, §1:02 and
§1.03. You may appear on your own behalf or with your attorney. Hearings are tape-recorded. Pursuant to
M.G.L. C.30A, §11 (6) written transcripts will be furnished if requested in writing with tender of payment.
You may arrange for your own stenographer. Reports, if any, concerning the violations charged may be
examined and copied at the Commission's office.
NOTE: It is important that licensees and those interested in this matter attend the hearing to present evidence and testimony.
The Commission, in some cases, has the power to suspend, mod, revoke or cancel licenses
t )ated at Boston, Massachusetts this 26 h day of February 2010.
I ' S. Gainsboro
Chairman
M, Reading Licensing Board
Frederick G. Mahony, Chief Investigator
Paul Capurso, Investigator
Michael Teehan, Investigator
File
9'~I
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Reading Ice Arena Authority, Inc.
Peter
We look forward to getting back on track with a payment to the town his year. The expansion has been
well received by the girls team as well as turning into a great haunted house venue at Halloween for the
townspeople.
We received the enclosed Financial Statements last week from our auditors. Any questions please let us
know.
~BA
William Jennings
781942 2728
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51 Symonds Way, Reading, MA 01867 2
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2010 KKR I 1 AM 11: 00
March 9, 2010
Reading Board of Health
Ms. Barbara Meade, Chairperson
Reading Town Hall
18 Lowell Street
Reading, MA 01867
Dear Ms. Meade and Members of the Reading Board of Health:
On March 3, 2010, we received a letter by Certified Mail from Mr. David Walsh and Ms.
Jennifer Bester, both of 27 Berkeley Street, Reading, outlining their intent to petition the
Reading Board of Health for a permit to house and raise up to ten (10) chickens at their
address on Berkeley Street.
We are writing the Reading Board of Health in opposition to the granting of this permit.
Berkeley Street, with its I closely spaced homes and many young children, is not suited to
the raising of chickens or for that matter any other type farm animal. Over the past
several years the neighborhood has experienced an increased presence of skunks,
raccoons, coyotes and even fox, as these wild animals become more acclimated to human
activities. While Mr. Walsh and Ms. Bester may argue that they will try to take all
precautions to prevent intrusions by wild animals into their hen house, the raising of
chickens at 27 Berkeley Street will only increase the areas attraction to these animals.
The hen house will likely become an attractive nuisance for wild animals.
Beyond the concern with the attraction of wild animals into the neighborhood, the whole
issue of the health and well being of the area and its residents must be the primary focus
and concern of the Board of Health. For example, how do the petitioners plan to dispose
of the waste and residue that will be created as a natural by-product of raising chickens?
Will it become part of the regular weekly garbage and trash pick-up? Will they simply
dump such waste on their property? How do they plan to control the inevitable odors
created by this activity, especially during the hot, humid, summer months? These
questions require . clear and thoughtful analysis and answers. Answers not provided in
their letter.
Finally, Mr. Walsh and Ms. Bester state their intentions of starting with four (4) chickens
with future plans to ultimately expand the operation to ten (10) chickens. This suggests
that their long term intention is to develop some type of commercial egg and poultry
business operated from their home. This activity may constitute a non-conforming use of
their home in a residentially zoned district of Reading. For this reason we are sending a
copy of this letter to the Board of Selectmen for their information.
We again state our opposition to the granting of a permit by the Reading Board of Health
to Mr. Walsh and Ms. Bester to raise chickens,at 27 Berkeley Street.
Thank you.
Sincerely
Richard H. Coco
oan M. Coco
4 Fremont Street
Reading, MA 01867
CC: Reading Board of Selectmen
9 Cv
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M.emo
To: Peter I. Hechenbleikner, Town Manager
From: George J. Zambouras, Town Engineer
Date: February 23, 2010
Re: Memorial Bid Results
Below please find the results of the three lowest Bidders on the Memorial Park project.
Ronald A. Marini Corp
Base Bid $490,426.00
Alternate #1 $515,126.00
Alternate #2 $548,576.00
Alternate #3 . $577,496.00
Alternate #4 $582,596.00
J.J. Phelan & Sons Co. Inc. JBM.General Contractors
$498,545.50 $540,343.60
$540,345.50 $577,868.60
$581,445.50 $602,543.60
$606,900.50 $631,467.50
$612,350.50 $636,793.20
* the low bidder's price includes a bidding error which reduced their base bid by $2,376.00
Work under the Base Bid includes the reconfiguring of the skating ponds, lining the skating ponds,
associated pond drainage improvements, new basket ball court, tennis courts and fencing for all courts.
Alternate #1 Includes installation of the Reclaimed asphalt walkway within the park
Alternate #2 Includes installation of "empty' electrical conduits and pull boxes for future lighting
Alternate #3 Includes installation of granite curbing along the Harrison Street parking area
Alternate #4 Includes wooden guard rail and gate at the Salem Street parking area and wooden gates
along Harrison Street
To reduce project Bid costs DPW is performing the following work:
e 440 I.f. of brook cleaning and repair of stone bank on the open brook from the gravel access road
to Salem Street
e Demolition and disposal of the basketball court, fencing and stanchions
Demolition and disposal of the tennis courts, fencing and nets
® Page 1
Q V'"
CyJ
• Removal and disposal of existing lighting and posts
• Removal and disposal of all pressure treated pole barriers
• Installation of paved parking area along Harrison Street
• Installation of drainage improvements along Harrison Street (associated with Pavement
expansion); 3 drain manholes, 4 catch basins, 280 I.f. of 12" drain
• Installation of stormwater management systems consisting of 2-Stormceptors and 1 water quality
swale
• Demolition and removal of 2 catch basins
Material cost for the work DPW is performing is estimated at $51,000 and is comprised of the following:
• Disposal costs - $3,500
• Drainage pipe and structures - $12,500
• Stormceptors and crane rental - $20,000
• Pavement expansion - $15,000 (price includes the expanded pavement necessary for parking only
no repaving costs of Harrison are included)
e Page 2
~i
.Ieffrey W. Stru,ble
Four Tower Road
Reading, MA 01867-2039
(781) 944-2731
Board of Selectmen
16 Lowell Street
Reading, MA 01867
Attention: Richard Schubert / Ben Tafoya
Reference: Resignation from Ad Hoc Municipal Building Committee
Dear Messrs. Schubert and Tafoya:
wc Q t'
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March 10, 2010
I am writing to submit my resignation from the Ad Hoc Municipal Building Committee,
effective immediately. I appreciate your appointment of me as a Resident at Large but I
find that I cannot continue on that committee for personal reasons.
I apologize for any inconvenience my brief acceptance of the position may have caused.
Very truly yours,
Jeffrey W. Struble
Cc: D. Michaud, Chair
0
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Page 1 of 3
ZI/G 3 o S
Schena, Paula
From: Hechenbleikner, Peter
Sent: Wednesday, March 10, 2010 11:28 AM
To: Schena, Paula
Subject: FW: 2010-292 RE: Local Options tax - citizen's petition
I/c Board of Selectmen
Peter I. Hechenbleikner
Town Manager
Town of Reading
16 Lowell Street
Reading MA 01867
phone: 781-942-9043
fax 781-942-9071
web www.readingma.gov
email townmanager@ci.reading.ma.us
Please let us know how we are doing - fill out our brief customer service survey at http://readingma-
survey.virtualtownhall. net/survev/sid/603ffd2e45471753/
From: Ellen Doucette [mailto:ecdoucette@brackettlucas.com]
Sent: Wednesday, March 10, 2010 9:52 AM
To: Hechenbleikner, Peter
Subject: Fw: 2010-292 RE: Local Options tax - citizen's petition
Peter,
The DOR has no opinion regarding the citizen's petition and believes it is a home rule matter.
See below.
However, Reading's Charter, Section 2-13, Warrant Articles, provides that the
Selectmen "shall place on such Warrants all subjects requested by; (a) any two or more
Selectmen; (b) any elected or appointed Town board; (c) any ten (10) or more voters...". As
Charter provisions take precedence over the bylaws, even if the citizen's petition were to be
adopted, it would not prohibit the placement on the warrant of another article(s) proposing the
adoption of a local option tax or fee increase, if such articles were submitted pursuant to
the Section 2-13 procedure.
Please call if you have any questions
Ellen
From: Hinchey, Christopher M On Behalf Of DOR DLS Law
Sent: Thursday, March 04, 2010 1:50 PM
To: 'Ellen Doucette'
8 ti,
3/10/2010
Page 2 of 3
Subject: 2010-292 RE: Local Options tax - citizen's petition
We don't have a strong sense whether such a bylaw is within a town's home rule powers. It doesn't directly
conflict with c.4 §4's provisions of how to accept a local options statute; although §4 does say that the acceptance
is by vote of the legislative body subject to the charter, without mentioning bylaws or.ordinances, that's probably
to deal with anomalous cases like Everett, which has a 2-chamber legislative body. Maybe there's an issue of
consistency with c.39 §10's provisions governing warrants for town meetings?
In addition to having no strong sense whether this is within a town's home rule powers, we don't have any
institutional stake in the answer to this question, one way or the other.
Chris Hinchey Tax Counsel
Bureau of Municipal Finance Law
PO Box 9569
Boston, MA 02114-9569
617-626-2400
dlslaw dor.state.ma.us
This e-mail response is intended to provide general information about the application of municipal tax and finance
laws and Department of Revenue policies and procedures. It is not a public written statement, as defined in 830
CMR 62C.3.1, and does not state the official position of the Department on the interpretation of the laws
pertaining to local taxes and finance. It should be considered informational only.
From: Ellen Doucette [mailto:ecdoucette@brackettlucas.com]
Sent: Tuesday, March 02, 2010 11:00 AM
To: DOR DLS Law
Subject: Local Options tax - citizen's petition
Good morning,
I have what I think is an interesting question., The Town of Reading voted down the local option meals tax at the
fall town meeting. The Selectmen were considering putting it on again for the annual town meeting. They just
received a 10 taxpayer petition to amend the general bylaws to state that "Any tax and/or fee increase which is
rejected by town meeting cannot be brought back before town meeting" for at least 18 months.
Aside from whether or not this is a good idea, can a town amend its local bylaws to restrict the ability of a town to
adopt a tax/fee in this manner?
Thank you as always for your response.
Ellen
Ellen Callahan Doucette, Esq.
Brackett & Lucas
19 Cedar Street
Worcester, MA 01609
(508) 799-9739
(508) 799-9799 Facsimile
wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww
This email and any files transmitted with it are confidential and
intended solely for the use of the individual or entity to whom they
are addressed. If you have received this email in error please notify
the system manager at postmaster at dor.state. ma.us.
3/10/2010
L/c 6os
Schena, Paula
From:
Hechenbleikner; Peter
Sent:
Monday, March 01, 2010 11:16 AM
To:
Reading - Selectmen
Cc:
Schena, Paula
Subject:
FW: FAR-18496 - Notice: FAR denied
1/c BOS
Peter I. Hechenbleikner
Town Manager
Town of Reading
16 Lowell Street
Reading MA 01867
phone: 781-942-9043
fax 781-942-9071
web www.readingma.gov
email townmanagerCci.reading.ma.us
Please let us know how we are doing - fill out our brief customer service survey at
http://readingma-survey.virtualtownhall.net/survey/sid/603ffd2e45471753/
-----Original Message-----
From: Ellen Doucette [mailto:ecdoucette@brackettlucas.com]
Sent: Wednesday, February 24, 2010 4:58 PM
To: Hechenbleikner, Peter; Delios, Jean
Subject: Fw: FAR-18496 - Notice: FAR denied
Mr. Fulgoni's case re: the grandfather status of Lot 1A South Street is now officially
over.
Ellen Callahan Doucette, Esq.
Brackett & Lucas
19 Cedar Street
Worcester, MA 01609
(508) 799-9739
(508) 799-9799 Facsimile
-----Original Message
From: <SJCCommClerk@sjc.state.ma.us>
To: "Ellen Callahan Doucette, Esquire" <ecdoucette@brackettlucas.com>
Sent: Wednesday, February 24, 2010 4:00 PM
Subject: FAR-18496 - Notice: FAR denied
> Supreme Judicial Court for the Commonwealth of Massachusetts
> John Adams Courthouse
> One Pemberton Square, Suite 1400, Boston, Massachusetts 02108-1724
> Telephone 617-557-1020, Fax 617-557-1145
> RE: Docket No. FAR-18496
> KEVIN N. FULGONI
> vs.
> ZONING BOARD OF APPEALS OF READING & others
>
> Land Court No. 06MISC329592
> A.C. No. 2009-P-0640
1
S I i I
> -,NOTICE OF DENIAL OF F.A.R. APPLICATION
> Please take note that on 02/24/10, the above-
> captioned. Application for Further Appellate Review was denied.
> Susan Mellen, Clerk
> Dated: February 24, 2010
> To: Mark Bobrowski, Esquire
> Ellen Callahan Doucette, Esquire
>
This e-mail notice is being sent to you as part of a pilot program
> being conducted by the SJC Full Court Clark's office. Under the
> program, notices will be sent by e-mail to those whose e-mail
> addresses have been provided to the Clerk's office. During the pilot
> program, a copy of the notice will also be sent to you by regular
> marl. If you have any comments about this e-mail notification,
> please let us know. If you would prefer not to receive such e-mail
> notices, please notify us'at the above e-mail address. Thank you.
~~y