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HomeMy WebLinkAbout2010-02-24 Finance Committee PacketThe Town of Reading - FINCOM http : / /www.readingrna.gov /Pages /ReadingMA_MeetingCal /SO 153 15D,.. Town of Reading 16 Lowell Street, Reading, MA 01867 FINCOM Wednesday, February 24, 2010 at 7:30 PM Town Hall Conference Room Town of Reading Town Hall conference room Reading, MA 01867 February 24, 2010 Meeting Agenda 1. Health Insurance update J 2. FYll budget: revenue review 3. FYI Town Manager Budget 4. Regionalization 5. Other • Snow & Ice budget; FINCOM reserve fund request (library) • Upcoming March budget schedule 6. FINCOM minutes a September 30, 2009 e October 14, 2009 ® November 9, 2009 ® November 18, 2009 7. Adj ourn Health Insurance Update - January 16,2010 Enrollment HMO PPO Medex June'07 1,168 586 176 406 June'08 1,186 600 162 424 June'09 1,182 618 145 419 July 109 1,196 590 184 422 Jan '10 1,213 590 198 425 Change 31 (28) 53 6 June'09 Jan '10 Change Enterprise' 145 148 3 RMLD, Water, Sewer Municipal 346 342 (4) Schools 691 723 32 1,182 1,213 31 BPv-,G�3 q c (Uw 4,) 4. 12- 'Alf �.IIMR g VnI_ XXW. No. 2 A Publication of the Massachusetts Municipal Association 0 VVWkrW.rnrna.orq February 2010 Budaet bmill avoluds -local add culs Government Aid account D.Lu, the governor also an- would be level- funded at nounced proposals to help $936 million, after being cut cities and towns reduce by $378 million (29 percent) costs. The governor filed leg- since the beginning of fiscal islation (H. 4439) to give , 2009. cities and towns tightly re- With cities and towns stricted authority to extend statewide facing large bud- their pension funding get gaps next year, the schedules by 10 years, to MMA is asking the Legisla- 2040, to protect local tax- ture to approve a local aid payers from unnecessarily resolution for fiscal 2011 high assessments during based on the governor's this time of fiscal crisis. Un- budget recommendations. less the funding schedules The House is not expected are extended, market losses to debate a fiscal 2011 state caused by the recession will budget until mid-April, and trigger steep increases in the Senate customarily • annual pension payments takes up the budget in mid- and force budget cuts to May. The Legislature* last key municipal and school approvied a local aid resoiu- services. tion in March 2008 for fis- The governor also sent a cal 2009 municipal and • special message to the Leg- school aid distributions. islature endorsing passage "Arhe" filing his budget BUDGET, continued on 22 By John Robertson '0 n Jan. 27, Gov. Deval Patrick filed a $28.2 billion state budget recom- mendation for fiscal 2011 that would provide $4.98 billion to level-fund the main municipal and educa- tion aid accounts and en- sure that every city, town and school district receives at least the fiscal 2010 level of funding next year. Thirteen school districts would receive a small aid increase in order to reach the foundation budget level of spending on education. The state appropriation for Chapter 70 education aid would increase by $178 million to make up for state fiscal stabilization fund rev- enues (federal stimulus funds) used to help pay for Gov. Deval Patrick presented a preview of his budget bill during the MMA Annual Meeting on Jan. 22 in Boston. He told local officials that his proposal would Levelfiind most local aid pr6gran7s. Chapter 70 in fiscal 2010 and to cover the additional school aid amount. . The Unrestricted General By Mitch Evich Beverly Mayor Bill Scan- lon is the new presi- dent of the MMA, and Nat- ick Selectman Josh Ostroff is the new vice president. . The AEVIA board endorsed Scanlon and Ostroff as offi- cers for 2010 following the association's Annual Busi- ness Meeting in Boston on Jan. 23. Scanlon, who succeeds F'rsnklin Town Administrator Jeff Nutting as MMA presi- dent, is serving his eighth two-year term as Beverly's mayor, following a career in the private sector: The city bond rating has been •raised many times during his tenure, which is the longest in Beverly history. . Beverly Mayor Bill Scanlon (right) stands, with Natick Selectman Josh ostrofffollowing their election on Jan. 23 as president and vice pres- ident of the MMA- He received the Theodore Mann Award for Regional Leadership in 2008 and has served as chair of the North Shore Coalition of Mayors and Town Managers. Scanlon said his priorities include legislation that would allow cites and towns to make changes to employee health care plans. outside of collective bargain- ing — a change that could pp,E,qmF,NT, continued on 27 continued from page 1 of a limited early retirement incentive for municipal em- ployees as a tool to assist cities and towns in reducing the size of the workforce. In anticipation of the start of a slow recovery in the state's economy, the gover- nor's budget is based on a consensus tax projection of $19.05 billion, an increase of $590 million (just 3.2 per- cent) over the current pro- jection for fiscal 2010. The consensus estimate repre- sents the agreement reached early each year between the governor's chief budget ofii- cer and the chairs of the House and Senate Ways and Means committees on a tax projection for the next fiscal year. For fiscal 2011, the gov- ernor's budget also in- cludes $177 million in tax initiatives, some of which would be used to supple- ment the slumping sales tax amount used to fund the state's School Building. Authority. The new taxes include proposals filed last year to end sales tax ex- emptions on candy and , soda, extend the cigarette excise to cigars and other tobacco products, cap the tax credit for the film in- dustry, and improve state tax collection efforts. The governor's budget also relies on another round of temporary non -tax revenues, mainly $175 million from the state's stabilization fund and $1.4 billion in federal economic recovery funds. The federal dollars include about $600 million in addi- tional Medicaid reimburse- ments that have been Ap- proved by Congress but have not yet become law. Beyond level - funding the main local aid accounts, the governor's budget recom- mendation would treat smaller municipal and school aid accounts in dif- ferent ways. The Cherry Sheet Pay - ment -in- Lieu -of -Taxes (PILOT) program would be level - funded at $27.3 mil- lion, and reimbursements discuss -MMPA to a .'nd employment- law egYslative and judicial developments regarding key labor • and employment laws will be the topic of the March 4 meeting of the Massachusetts Municipal Personnel :Association. The meeting will cover re- cent developments in state and federal anti -disc mina- tion laws, wage and hour laws, the Family and Med- ical Leave Act, the data se- curity law, and other impor- tant state and federal laws affecting employers in Mass- achusetts. The session will be led by attorneys Gregory Manousos and .Daniel Field, partners at Morgan, Brown & Joy, a Boston firm that specializes in representing. employers in labor and employment law matters. The meeting will be held at the Thayer Public Library in Braintree. The registra- tion fee is $30 for members and $45 for nonmembers. Members and nonmem- bers may register online at www.mma.org. Contact MMA. Member Ser- vices Coordinator Ellen Stool - macher Page 22 TheBeacon February 2010 for veteran's benefits would increase by $7 million. The Police Incentive Pay Program (Quinn Bill) would be cut from $10 million to $5 million. Full funding of the state's 50 percent share of the program would re- quire almost $60 million. The governor filed legislation last October to clarify that municipalities are not liable for the state share of Quinn Bill payments unless they are specifically required to by a collective bargaining agreement. The Legislature has not taken up his rec- ommendation. The regional library aid account would be cut by $3 million. The governor has proposed to eliminate the cap on minimum spending waivers that the Board of Library Commissions may grant next year. On the school side, stu- dent transportation reim- bursements for regional school districts would be level - funded at $40.5 mil- lion, which would cover about half of the state's es- timated share of costs. Special education "circuit breaker" reimbursements would be roughly level - funded at $135 million and would cover an estimated 35 -40 percent of eligible costs next year. In a pro- posed law change in the budget bill, the governor would freeze private school special education tuition rates at the fiscal .2010 level. The governor would level- lund, at $75 million, reim- . bursements to municipali- ties and school districts for a portion of Chapter 70 ed- ucation aid taken to pay, tu- ition to charter schools. The preliminary Cherry Sheet es- timates released by the Divi- sion of Local Services with the governor's budget rec- ommendation project that school aid deductions will total $304 million next year, an increase of $17.6 million. Under these estimates, re- imbursements would cover 25 percent of lost school aid. 1 ( ti I C i C I � p B d A to SI tit 9 . 1. 1 1., �1_ foMunahv: Budget picture -remains unsettled r budget - crafting purposes, local aid." Murphy pointed, out, the He said legislators are state's tax collections will likely to pass a local aid still fall shy of levels resolution so that local lead - achieved in fiscal 2007. ers will have reliable num- "We're facing a fiscal situ - bers for crafting municipal aiion for fiscal 2011 that budgets. hasn't been seen In "We are hopeful to get a decades," he said. "When we local aid resolution,° he put this fiscal 2011 budget said. '-You might not like together, it's going to make the numbers, but you need fiscal 2010 look like the the nurribers." good old days.... We have Legislators did not adopt to balance the budget. We're a local aid resolution last going to have to make diffi- year. For fiscal 2008 and cult choices." 2009, the Legislature passed He said there is "no ap- resolutions in March. petite" on Beacon Hill for Murphy did not offer any raising taxes. specifics about' what legisla- He added, however, that tors might do on local aid. legislators will make every The format did not allow for effort to protect local aid. questions from the audience. "We are trying to help The House Ways and .. cities and towns," he said. Means Committee is ex- 'We understand the chal- pected to file its fiscal 2011 lenges you face.... Nobody budget recommendation in in the building wants to cut mid - April. By John Ouellette day after Gov. 1 Deval Patrick told local off!- • ° ° cials that his budget bill would level - fund the main local aid ac- counts, House Ways and Means Committee Chair Charles Murphy warned local officials that the state's budget situation rarnainG unsettled. ".All I suggest to you folks is dont go n'nni g out and putting your budgets together" based on local aid amounts in the governors proposal, Mur- phy said during the MMt3s Annual Business Meeting on Jan. 23 in Boston. He said the state still faces a $3 billion budget gap and is only slowly emerging from an economic crisis. While state revenue collections are House Ways and Means Commit tee Chair Charles Murphy speaks during the MMA's Annual Busi- ness Meeting on Jan. 23. showing modest growth, he said, it's too early to tell if the trend is reliable. Even if revenue growth does hit the 3.2 percent benchmark for fiscal 2011 that state leaders are using EPA eleases draft of new clean _ cant source of water pollu -, tion. The proposed permit includes 'best management practices," such as removing illegal sewage connections to storm. drains, street sweep- ing, public education, and steps to expand the filtra- tion of storm water rather than diverting storm water Into sewer systems. The federal Clean Water Act requires that these per- mits be re- evaluated every five years to ensure that they continue to protect the environment. The previous permit was issued •iii 2003. The EPA is seeking.com- ments on the draft MS4 permit until March 31. The agency will hold a public hearing on March 18 at.9 a.m. at the Thomas P. O'Neill Federal Building in Boston. By Torn Philbin n Jan. 27, the U.S. Environmental Protec- tion Agency announced new pollution control measures in a draft Clean Water per- mit to reduce pollution from storm water runoff' in 84 communities in Eastern Massachusetts. The draft permit would re- quire communities to insti- tute more advanced storm water management programs designed to reduce pollutants that are discharged from municipal storm drains. These programs include the monitoring of storm water discharges, and measuring and limiting the maximum amounts of pollutants re- leased to rivers, lakes and bays. Municipal storm sewer systems (MS4s) collect rain and snowmelt from streets and drain them to rivers and streams. Some sewage lines or industrial dis- charges can be improperly connected to storm sewers, however, leading to raw sewage or other pollutants reaching water bodies. Discharges from MS4s can include Infiltration from cracked sanitary systems, spills collected by drain out- lets, or paint or motor oil dumped directly into a drain. These discharges con- tribute bacteria, heavy met- als, toxins, petroleum prod- ucts, solvents, nutrients, viruses and bacteria to water bodies. The EPA has found that illegal sewage connections are major con- tributors to pollution in New England's rivers and streams. Last year, a group of Massachusetts local officials, including former MMA Presi- dent Bruce Tobey, traveled to Washington, D.C., .to meet with top EPA officials to express concern about a number of unfunded federal mandates,' assistances to cities and towns,, and 'com- munications. between the EPA and communities. The local officials told the regional administrator for the EPA s New England of- fice that strict wastewater and storm water standards are placing a financial bur- den on cities and towns at a time when local budgets are already stretched to the limit. In its draft permit, the EPA has considered suc- cessful efforts by cities and towns to address a signifi- TheSencon February 2010 Page 5 FINCOM FY10 Schedule (All meetings are Wednesday at 7:30pm in Town Hall, unless noted) 2009 August 12 - regular meeting - August 12 Minutes September 9 Financial Forum I (at the Senior Center) September 9 Minutes FY10 budget review; FY 11 Budget process September 30 regular meeting October 14 Financial Forum II (at the Senior Center) Capital Plan; FYl 1 preliminary revenues November 9 Subsequent Town Meeting begins (Monday) November 1S regular meeting 2010 February 10 Financial Forum III (at the Senior Center) March 3 FYl l Budget Meetings — Benefits, Capital, Debt; Town Departments March 10 FYI I Budget Meetings - School Department March 17 , FYl 1 Budget Meetings — Town Departments March 24 FYl 1 Budget Meetings — Town Meeting Warrant & budget discussion March !31 FYI Budget Meetings — FINCOM votes warrant & budget April 14 regular meeting April 26 Annual Town Meeting begins(Monday) May 12 regular meeting June 30 Year -end meeting J 02/10/2010 09:20' TOWN OF READING blelacheur (YEAR -TO -DATE BUDGET REPORT FOR 2010 13 . ACCOUNTS FOR: ORIGINAL APPROP TRANS /ADJSMTS REVISED BUD YTD EXPENDED 0401 DPW -TRASH SNOW STREET LIGHTING 0423 SNOW / ICE CONTROL 144,517 0. 03 SALARIES - 14235530 530420 PLC DETAIL 171.90* 14233511 511000 WAGES PERM - 34,799.60 147.2% 8,000 0 11,971 0 11,971 14233511 515000 OVERTIME 6,521.43 18.5% 269,758.74 23,890.63 61,812 0 61,612 TOTAL SALARIES 14235540 540430 SALT 100.0.* 16,639.52 73,783 0 73,783 05 EXPENSES 0 0 0 14235530 530415 PLOW /HAUL 84,790.63 - 150,634.81 PG 1- glytdbud ENC /REQ AVAILABLE BUD % USED 2,305.44 .00 144,517 0. 144,517 - 14235530 530420 PLC DETAIL 171.90* 108,582.60. .00" - 34,799.60 147.2% 8,000 0 8,000 14235540 540000 SUPP /EQUIP .00 6,521.43 18.5% 269,758.74 23,890.63 248,700 0 248,70.0 14235540 540430 SALT 100.0.* 16,639.52 .00 8,360.48 66.6% 0 0 0 14235548 548999 GASOLINE 84,790.63 - 150,634.81 130.11 565,844. 18 84,790.63 25,000 0 25,000 TOTAL EXPENSES - 150,634.81 426,217 0 426,217 TOTAL SNOW / ICE CONTROL 500,000 0 500,000 TOTAL DPW -TRASH SNOW STREET LIGHTING 500,000 0 500,000 TOTAL EXPENSES _ 500,000- 0 500,000 PG 1- glytdbud ENC /REQ AVAILABLE BUD % USED 2,305.44 .00 9,665.56 19.30 '106,277.16 .00 - 44,465.16 171.90* 108,582.60. .00" - 34,799.60 147.2% 169,384.75 .00 - 24,867.75 117.2.* 1,478.57 .00 6,521.43 18.5% 269,758.74 23,890.63 - 44,949.37 .00 60,900.D0 - 6.0,900.00 100.0.* 16,639.52 .00 8,360.48 66.6% 457,261.58 84,790.63 - 115,835.21 127.2% 565,844.18 84,790.63 - 150,634.81 130.11 565,844. 18 84,790.63 - 150,634.81 130.1% 565,844.18 84,790.63 - 150,634.81 Children's room — Shelving Repairs and reinforcement: Three separate spans of shelving - one 5-', 24', and 36' - have pulled away from the exterior walls in the children's 'room. Each unit is comprised of three low shelves of books. The 185 linear feet of shelving hold approximately 3500 children's books. This problem has existed for several years, but has recently become more pressing. Custodians have reinforced the steel shelving with L brackets several times, but the fix won't hold as the weight of the books (reduced by almost one -third on re- shelving) and the old flooring continue to cause the book cases to lean in and bent the steel brackets right away again..... In the picture book area, where we thought there was a safety risk, we emptied the shelves until they can be repaired. The books are temporarily shelved elsewhere and other children's room collections have been relocated to the basement awaiting new shelving. The replacement shelving will provide a long -term safe and secure fix for a collection that is very heavily used by very young children and toddlers. We will be able to reuse some of the individual parts of the current shelving with the new supports and frames. Both problem areas and the books are very heavily used by families with young children, and school -age children, so there's a certain amount of urgency to our moving quickly to resolve this. I MASSACHUSETTS DMSER RWOM!!'�s IN P 1N R. February 1, 2010 Re: MRA Dividend, 2010 L (C 4S. One Winthrop Square, Boston, MA 02110 617-426-7272 or 800-882-1498 Facsimile 617-426-9546 • www.ernila.org C , � I tk C OVL•-- I., M Dear NffLk Member: At our annual meeting on January 23, 2010, MIIA announced,that-the Board of Director?' of the NIIJU Property and Casualty Group, Inc. had declared $500,000 in Dividends. Enclosed is a facsimile check showing the dividend amount awarded to You. You may use this as a premium credit or, if you prefer; you-may request a check for this amount. In either case, please make your request in writing. Coritact Greg McGrath at grncgrath@mma:org (1-800-374-4405•ext. 256). If you wish to publicize .publi�i the dividend award, I have enclosed a sample press release for your use. It was also announced at the annual meeting that MM is continuing distribution of $10,000,000 in Participation Credits over three years. Fiscal year 2011 will be the third year of this distribution. This amount more than doubles Participation Credits granted prior to FY2009. In addition, VIIJA granted a one-time $2,000,000 Participation Credit retroactive to FY2009. This additional.amount was distributed in July 2009. Thus,,the three -year Participation Credit total will be $12,0•,000, The Participation Credit re ., qognizes the continuing commitment of many of our members over several years, and recognizes the administrative savings to the program from these loyal members. These credits will be applied to your Property & Liability and Workers, Compensation premiums on policies effective July 1, 2010. Only members who remain in the programfor fiscal. year 2011 are eligible to receive Participation Credits. The credits will be shown in your invoice. i for you'r loyalty Thank YOU , and for your part in maintaining the excellent loss control and safety records which. allows N411A to provide these savings to our members. Sinter Y. John Kelly operations Manager An Interlocal Service of the Massachusetts Municipal Association PRESS RELEASE MHA Announces 1500,000 Dividend Continues Distribution- of $io Million Participation Credit `MIIA Property and Casualty Group declared $500,000 in Dividends and - continued distribution of $10,000,000 in Participation Credits announced in 2008. The participation credit is being distributed over three ye'ars, fiscal years 2009, 2010 and 2011. Therefore, the credit for FY2011 will be more than $33M. Combined with the $500,000 dividend, the total distribution for FY201.1'will be, over $3.8M. In addition to the 3-year $10,000,000 participation credit, M11A also has distributed an additional one-time $2,000,000 participation credit that applied retroactively to fiscal year 2009. Thus, participation credits that will be provided in FY2009, FY 2010 and FY20 11 now total $12,000,000. . These participation credits and dividends benefit participants in MIIA's workers' compensation and property & liability program's. The [NAME OF MEMBM is a member of the [MIA workers' compensation program and/or the M11A property and liability program] and has received a dividend in the amount of [AMOUNT -OF DIVIDEND]. Total dividends and participation credits returned to MIIA members now exceed $37-million!' The dividend distributio, n of $500,000 confirms MHA's underlying philosophy that municipalities and other public entities, through a cooperative effort, can reduce and control workers' compensation insurance costs. MHA. is distributing this dividend to eligible members immediately. MHA introduced the Participation Credit several years ago to recognize the continued commitment of many of our members and to recognize the administrative savings to the program from these loyal membeis. The Participation Credit- will be applied to reduce insurance premiums on policies effective July 1, 2010 (FY201 1) for members who remain -in the programs for that fiscal year. These credits and dividends, combined with discounted rates, offer members substantial savings. In addition, MHA continues to expand its MIIA Rewards program, a program that enabled MIIA members to earn more than $2M in additional credits against FY2010 insurance costs. Members earn these credits by performing 'certain loss control activities and attending training seminars offered by MHA. G�J The dividend and participation credit announcement was made during the M]IA.'s annual business meeting on January 23rd, 2010. More than 350 public officials attended the annual business meeting and luncheon, which is held during the Massachusetts Municipal Association's annual meeting. MIIA (which stands for the Massachusetts Interlocal Insurance Association) is the private, non - profit insurance arm of the Massachusetts Municipal Association. Municipal insurance is MIIA's only business. MIIA insures over 390 cities, towns, and other public entities in Massachusetts. OFJR? y` Finance Committee Meeting. September 30, 2009 639jINCD W Conference Room, Reading Town Hall The meeting convened at 7:3 0 PM in the Conference Room of Town Hall. FINCOM Members Present: Committee Chair George Hines, Matthew Wilson, Bryan Walsh, Marsie West, David Greenfield, Tom White, Barry Berman and Kevin Leyne. Members Absent: Harold Torman " Also Present: Town Manager Peter Hechenbleikner, Assistan t To Manager/Finance Director Bob LeLacheur There being a quorum the Chair called the meeting to order at,7:30. Other Business: Bollard Replacement Cost The Town Manager stated that about 8 -10 total bollards have be: have been paid for by the auto insurance companies of the respoz has recently instructed. staff to stop replacing bollards as they are reviewing if the Town is able to continue to collectinsurance mo downtown improvements. Municipal Building Committee., A draft policy establishing a Munic FINCOM's meeting packet. The M what significant municipal iimprovc also identify potential funding sour the library, the possibility of all =dal equipment or possibly a commumt allow for a member of FINCQM to of the, October meetings for discuss ecked down and replacements parties. The Board of Selectmen ked down. Town Counsel is n,&set'it aside for other Building Commmittee (MB C) was provided on page two of ,would be composed of seven members who would determine As or projects maybe needed within the next ten years and to Some of the projects the MBC might. consider investigating are idergatt for;il e schools, space for the cemetery division's titer. The. MBC would be an ad -hoc committee which would ?.. This is a draft policy and is on the Selectmen's agenda for one and.:then they may go through the formal adoption process. Local Meals Tax Option The Town Manager, informed th&committee that this is on the Selectmen's agenda for October 20th and is also on the Town Meeting "Warrant for November (Article 11). Information and estimates of a 1 % meals tax was included in the meeting packet. Mr. LeLacheur explained that the State Department of Revenue's (DOR) estimates based on a 1 % increase in the local meals tax is provided in the packet but pointed out that these `estimates may not be accurate because the DOR data includes addresses for meals tax returns but businesses that operate in more than one location, such as chain restaurants, only file a single meals tax return instead of filing one for each location. DOR's findings are also based on 2007 data and Reading has had several new restaurants open and some have closed since that time. Based on the DOR's 2007 data, Reading would collect approximately $175,898 but this number may be high because of the large number of chain restaurants in town. Mr. Greenfield believed the local meals tax is an appropriate option at this point in time and would support it if the tax included an end date or a date at which the Town would reconsider whether to l`.J continue or discontinue the tax. Mr. White would like to further investigate other options before . . implementing a meals tax. A couple members did not realize this was on -the Town Meeting Warrant and asked if they should be voting on this article. Mr. LeLacheur said FINCOM will be expected to vote on this Article but it can be at the next meeting, after the Financial Forum on October 14th. Ms. West reminded the Committee that this was not a pure tax on everyone but only for people who make the choice to eat out. Mr. Wilson believes the committee should be looking at this as a revenue opportunity. Mr. Walsh asked if the neighboring Town's have a meal tax and asked for this information before malting a decision. Further discussion continued about the local meals tax. Mr. Hechenbleikner and Mr. LeLacheur will look into the neighboring town's audsee if they have a meals tax and will have that information for the next meeting. Mr. Hines also asked for information as to what exactly gets taxed, at what level does the meals tax kick in? The Town Manager said he would also check with Town Counsel to see if the meals tax can have a sunset clause. The discussion and vote will continue to the next meeting after the financial forum FYI Budget Process Page 18 of the handout shows proposed November Town IVleeting budget amendmentsfor F.Y2010. There is a decrease in the health insurance costs due to the policy change, an increase in community services wages budget due to the change.in Town Planner, aid an increase in the Veteran's Benefits in the community services expenses budget. Town Meeting will' also vote a new School Department budget to reflect the change of a federal grant that replaces the state ;aid. Accommodated costs are shown on page 16 It as veryhard to make an accurate estimate for projected Health Insurance because we don't know these'exact libfi bers until late January. Unemployment benefits for FY2010 and FY2011 have increased`to $100,000and $105;000 which is more accurate than the $55,000 initially projected, for FY2010. r Mr. LeLacheur said the Toi Financial Forum One member asked if it has explained that It Usuall`y tak emphasized' the importance will be reviewed in detail d is R nt plans to have a free -cash estimate for the October 14th eyed to teduce�the capital budget. The Town Manager for things to change during economic downturns and he capital levels in check. The capital and operating budgets ber 10' at the Senior Center. November Town Meeting Warrant The Town Manager acid Assistant Town Manager summarized each Warrant Article. Mr. LeLacheur recommended voting on each article on October 14th after the Financial Forum. He also noted that the Board of Assessors is also considering updating the Town's software program and hiring a new assessor who would be experienced in the new software. Ideally, the Board of Assessor's would like to hire someone by January I" Other The Town Manager informed the group that there will be discussion about the Coordinator of Volunteers position that was voted back into the FY 10 budget at Annual Town Meeting and discussion about the Town's practice of plowing church parking lots will be on the Board of Selectmen's agenda for next Tuesday October 6th. Approval of Minutes On a motion by Mr. Wilson, seconded by Mr. Greenfield, to accept the minutes for the meeting dated June 24, 2009, as written. FINCOM voted 5-0-1 (Mr. Berman abstained). On a motion by Mr. Leyne, seconded by Mr. Greenfiled, to approve the minutes for the meeting dated August 12, 2009, as amended. FINCOM voted 5-0-1 r. Hines abstained). dated September 9, 2009, as written. FINCOM voted 6-0-0 to approve. Mr. LeLacheur told FINCOM that they would be discussing the capital budget at their next meeting or during the Financial Forum. Mr. Berman made a motion, seconded by FINCOM 6-0-0 to adiourn. Respectfully submitted, Recording Secretary OF J? Finance Committee Meeting October 14, 2009 �rs'9 ,H�oR4p4 "` Reading Senior Center The meeting convened at 7:30 PM in the Senior Center FINCOM Members Present: Committee Chair George Hines, Vice Chair David Greenfield, Barry Berman, Kevin Leyne, Hal Torman, Bryan Walsh, Marsie West, Tom White and Matthew Wilson. Also Present: Board of Selectmen Chair Ben Tafoya and members Steven Goidy, James Bonazoli, and Camille Anthony; School Committee members Chuck Robinson, Karen Janowski, David Michaud and Elaine Webb; Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Town Accountant Gail LaPointe, Fire Chief Greg Burns, Police Chief Jim Cormier, Library Director Ruth Urell, Library Assistant Director Doreta Socha, DPW Director Jeff Zagar, DPW Business Manager Jane Kinsella, Interim School Superintendent` John Doherty, School Director of Finance & Operations Mary DeLai, Vocational School „Committee merriber Marie Ferrari, Richard Curtis, Bill Brown and Stephen Hagan from the Reading Advocate There being a quorum the Chair called the meeting to order FY09 Revenues Town Accountant Gail LaPointe reviewed the $400,000 over what was budgeted from varioi permits and all other revenue sources. FY09 i offset by the SFSF grant. The Town also expe expected, $400,000 Federal,Prescription Insui $250,000 in all other revenues venues for FY09. :The net total for FY09 was S.-sources such as building permits and health d a $;l rmllion dollar cut in state aid but it was 50,000 loss'n Motor Vehicle excise tax than idy (this, is a one time occurrence), and FY09 Expenditures The' Town was a total of $910,000 under budgeted expenses for FY09. The FINCOM had unused Reserves of $100,000” he School department lead a $218,000 surplus to off set the 9 -C cuts from January,,. and the municipal;government''. .had $385,000 in surplus above and beyond their April 9c cuts done at, 6wn Meeting. The reserves as of September 20'09 include $5,100,000 in free cash, $1,490,300 in the General Stabilization Fund; and $150,000in FINCOM reserves to make a total of $6,740,300 total in reserves. The total excludes stabilization fiends designated for specific purposes such as the Gateway Smart Growth District adoi�ted> in 2007. Projected FY11 Revenues: Ms. LaPointe discussed the projected revenues for FY11 and how they will change from FY10. Property taxes are projected to increase by $1.5 million, local revenues are expected to decrease by $0.4 million, intergovernmental revenues are assumed to stay level because state aid is unknown at this time, and total transfers and available are expected to decrease by $0.6 million resulting in a total change of half a million dollars or a 0.7% decrease from FY10 to FY11. Mr. Berman asked why the Town is budgeting for the same level of funding rather than less for FY11? Mr. Hines asked if the federal stimulus funds will be available next year and the Town Manager responded that it all depends on how the state decides to spend that money. Ms. Anthony asked why the federal stimulus money is in the projected budget if we are not sure if any funds will be available. The Town Manager explained that if we do get some federal stimulus money the Town can't spend it until it is appropriated and therefore it should be included in the budget. Accommodated Costs Update for FYI Mr. LeLacheur reviewed the accommodated costs and explained that the health benefits are the biggest unknown at this point in time because we won't have the exact numbers until January. The total projected FYI accommodated costs is $25.7 million. A November financial forum may not be necessary but if there is one we will know the results of the local meals tax vote, the status of the 9 -C cuts in FYI 0, and we will know the Governor's FY10 revised budget by then. Local Meals Tax Discussion The FINCOM Chair explained that the local meals tax option cam& up during the September financial forum and it was suggested to add this to the next financial forum,S'agenda. The FINCOM has discussed this at their last meeting but have not voted on the issue and would like t6 hear from the Selectmen; the School Committee and anyone else wishing to comment. The Town Manager directed everyone to pages 6 -8 of the' provided handout which lists all the establishments in Town that hold a common victualler's license-,and all would be subject to the tax if implemented. A few others may be also be subject to the tax that is not included in the list. The packet also includes Town Counsel's explanation of what constitutes a meal and what is and isn't taxable. To address the FINCOM's question from their last meeting, a sunset claus,.,,,,o ,rlhe tax is not allowed during the time of adoption but the Town can certainly rescind at any tune'. The rough estimate of a full year's value is between $125,000 and $150,000 Board of Selectman Chair Ben`Tafoya expressed support for this'opporiunity to generate some money for the Town. School Committee Chair Chuck Robinson expressed support emphasizing that the money it would generate 'could be helpful to the schools ,especially since they have already had to lay- off several positions and doesn't think-the" 1% tax will deter people from eating out. Mr. Hechenbleikner, explained that`this is`a Local tax AhatJ§ collected by the state but then returned to the localities. Mr White did`not believe this tax should be adopted and pointed out that the costs of various items are increases along with other taxes. A few other members of the FINCOM and School Committee also offered cornih'.ents in support` of the tax. Mr. Tafoya announced that the' Selectmen will be discussing the meals tax on their October 20th meeting agenda at.$,:30 PM. Ms. Ferrari from the Northeast-Vocational School Committee presented information about the school's budget. Town Meeting will �be voting on changes to the vocational school's budget in Article 4 in 11 November. Ms. Ferrari.distributed the school's FY 10 operating budget and a comparison between Reading Memorial High School and the Northeast Vocational school showing the breakdown of per pupil costs. FINCOM will need to make a recommendation to Town Meeting because the vocational. school.'s budget has changed since the Annual Town Meeting approval. Article 4: On a motion by Mr. Greenfield and seconded by Ms. West, FINCOM voted to approve line B99 as written in the amount of $175,000 by a vote of 9 -0 -0. On a motion by Ms. West and seconded by Mr. Torman, FINCOM voted to approve line D99 as written in the amount of $60,000 for the Performance Contracting by a vote of 9 -0 -0. On a motion by Mr. Torman and seconded by Mr. Greenfield, FINCOM voted to accept line E97 in the amount of $28;257 for the Northeast Vocational School by a vote of 0-8-1 (Mr. White abstained). The vote does not carry. Mr. Hechenbleikner and Mr. LeLacheur recommended that FINCOM wait to approve this budget item until more information is available and more work has been done by the vocational school on their budget. On a motion by Ms. West, seconded by Mr. Greenfield, FINCOM voted to: approve line K91 in the amount of $12,000 for the Community Services Wages by ,,a vote of 9 0 0;;, On a motion by Ms. West, seconded by Mr. Walsh,, FINCOM voted to approve lu eX92 in the amount of $50,000 for Community Services Expenses for Veteran's Benefits by a vote of 9 -0 -0. On a motion by Mr. Berman, seconded Mr. Torman, FINCOM voted to accept line V99 as written in the amount of $842,443 for the School Department byavote of 9 -0 -0. On a motion by Mr. Berman, seconded by Mr. Torman, FINCOM voted to approve line C7 in the amount of $75,000 for the Finance Department by a.,vote of 9-0-0.' The Board of Assessor's have re( includes the costs. of training `the" very dated and not used by many assessor who is fanular with,it. last vacant so they intend to reply program. On a. motion ,made by Mr. written Artcle;3 on the an Leyne was abs'e t,41or this Article 6: 1 to change the "existing assessing software system and also arson hired for the position. The Town's existing software is communities and therefore it will be very hard to find a new handful of people-applied two years ago when the position was software and then hire someone with experience using the new 'seconded by Ms. West, FINCOM voted to accept as the Capital Improvements Plan by a vote of 8 -0 -0 (Mr. On a motion by Mr. White, seconded by Mr. Greenfield, FINCOM voted to approve Article 6 as written by a vote of 9 -0 -0. Mr. Leyne will make the report to Town Meeting. Article 7: Article 7 was postponed to Annual Town Meeting in April. 3 Article 8: On a motion made by Ms. West, seconded by Mr. Greenfield, FINCOM voted to accept Article 8 as written by a vote of 9-0-0. Mr. White will make the report to Town Meeting on Article 8. Article 11: On a motion by Ms. West, seconded by M tax in Article 12 as written by a vote of 8- Mr. Wilson will make the report to Town M Other Business: One FINCOM meeting voted to on,P,,n1ciq*,I/-. to approve the local meals ppriove). committee' of the open meeting law. " !: * ­ Town Mr. LeLache.ii'r�"i6biin'de-d�.-th(,- Committee that Meeting is scheduled to begin on Monday " th yl November. '0 and ther'&"abe not meetinjs planned before then but email him, if anything comes up. The briof:write ups for each Warrant ant Mtklle�ihould be sent to Bob by Monday October 19th. I. . I arr On a motion by Mr. Berman, secon e y d d b Ms. West, the FINCOM meeting was adjourned at 10:07 pm by a vote. of 9 -0 -0. 4 COIN QFRZg Finance Committee Meeting r November 9, 2009 s3.: "c o�4o�P Reading Memorial High School The meeting convened at 7:00. PM in the Performing Arts Center at Reading Memorial High School. FINCOM Members Present: Committee Chair George Hines, Barry Berman, Kevin Leyne, Hal Torman, Bryan Walsh, Marsie West, Tom White and Matthew Wilson. FINCOM Members Absent: Committee Vice Chair David Greenfield Also Present: Assistant Town Manager/Finance Director Bob LeLacheur. There being a quorum the Chair called the meeting to order at 7:1 PM. Mr. Hines explained that new information about the proposed meals tax had come to: light since the formal FINCOM vote on October 14th. In particular, if adopted the tax must remain in place for a minimum of three years. He asked all members present if they wished to make a motion-16 'reconsider their previous vote, and all members declined to do so. Mr. Hines asked for interest in the new Municipal Building to this new group. On a motion by Mr. Berman, seconded by Air. Wilson ;I as their liaison to the ad hoc Municipal Building Commi inittee, and volunteered to be a liaison COM voted to appoint George Hines by., a vote of 7 -0 -1 (Hines abstaining). meeting was adjourned at 7:20 1 Finance Committee Meeting November 18, 2009 s39jIXCORp�R�� Conference Room, Reading Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present: Committee Chair George Hines, Vice Chair David Greenfield, Barry Berman, Kevin Leyne, Harold Torman, Bryan Walsh, Marsie West, Tom White and Matthew Wilson. Also Present: Town Manager Peter Hechenbleikner, Assistant Town Manager/Finance Director Bob. LeLacheur, Community Services Director /Town Planner Jean Delios,-Iibrary Director Ruth Urell, Library Trustees David Hutchinson, Jeff Doucette and Vicki Yablonsky, residents Dave Talbot and Rick Schaeffer. There being a quorum the Chair called the meeting to order at 7:35 pm. Other Business: FY11 Budget process The Assistant Town Manager reviewed the revenues assumptions' for FYI I which currently stand at $68.9 million net of debt exclusion and MSBA debt payments. This-is-4- projected decline of 0.4% versus FY10. The key assumptions are $11.43 million.in State Aid, or -, a 6.2 %o decline versus FY10; and $337k in Federal ARRA funding, or a 60% :decline from FY10. Projected Accommodated costs_are $25.25 million, oru-20X increase'from FY10 levels. The key assumption is health insurance at +8% o. If the Town, School and Facilities departments all had zero percent increases in their operating budgets (non - accommodated), a structural deficit of over $930k exists in FYI 1, and under similar projections this increases in FY12 to $1.4 million. On a motion by Marsie West seconded by David. Greenfield, to utilize up to $1 million of cash reserves in order``to balance the FYl1 budget = nendin! no mid vear FY10 9c cuts, FINCOM FY10 Northeast Metropohtau Regional Vocational School ( NMMVS) budget The Assistant Town Manager reviewed the most recent (November 12, 2009) proposed FY10 budget from the NIVIRVS School Committee. It is $861,935 lower than the previous proposal. Assessments to cities and towns would increase by 1% instead of the prior 5.9 %, thereby saving $548,178. The remaining shortfall in revenue is from state aid ($314,757). From an expense perspective, NMRVS proposes to reduce energy and health insurance expenses, but does not change staffing levels or cut other expenses. Continued lack of transparency in the budget process is noted. A December 1 takeover by the state is deemed to be probable, and this budget may then be. imposed. On a motion by Tom White, seconded by Bryan Walsh, to reject the most recent budget submitted by the Northeast Vocational School Committee, FINCOM voted 9 -0 -0. Library Building Update The Library Board of Trustees presented FINCOM with a handout "Building Evaluation and Recommendation ". They noted that community demand for services was still increasing, and the 1 r� existing facility presented structural and technological challenges to meet these demands. They cited the process used to gather facts and community input, and presented three possible options: renovate; renovate and build addition; new building /new location. They noted the Adams & Smith LLC study from May 2008 as background. Each approach was discussed, and the Trustees suggested that the Town fund an architectural study and site design for the first two options. They estimated a cost of $50k — 70k for such a study. Peter Hechenbleikner reminded the group about the Municipal Building Committee, and the role it now plays. November 30 — Special Town Meeting At the request of some residents, FINCOM agreed to hear about the Special Town Meeting (STM), even though they expected to play no formal role in zoning issues. They requested that all information presented focus on.the financial implications of the STM. Community Services Director /Town Planner Jean Delios gave an extensive presentation on the intent of the d propose zoning changes as well as the . possible financial results. She showed the history of a two year process with many meetings along the way that led to this STM. Residents Dave Talbot and Rick Schaeffer presented arguments against the proposed zoning changes, including the possible cost of extra parking needed. FINCOM-,'chair George Hines declared that there were not sufficient financial issuesat stake, and the rest of FINCOM agreed, resulting in no motions or opinions for the STM. Approval of Minutes FINCOM deferred approval until the next meeting . an Walsh made a motion, seconded by M . Bry arsie FINCOM 8 -0 -1 (Matt Wilson: = abstaining) to ad `ot Respectfully submitted, Rec 2 TOWN OF READING Finance Committee Liaisons — as of 2102/2010 Name /Address/Email Telephone Liaison Assignments 58 Grand Street George Hines ('05-'l 1), Chair. 617 -592 -6569 (C) Board of Selectmen; 35 Grand Street 617 -532 -4217 Schools; Audit Committee; gvhines@Nierizon.net 77 Sunnyside Ave David Greenfield ('05 -`11) 781 -942 -2072 (H) Accounting/Finance 192 Woburn Street 617 -664 -0417 (W) Board of Selectmen we4greens@comcast.net 3 Whitehall Lane Audit Committee Barry Berman ('07-'l 1) 781- 942- 7907(H) Schools 54 Longview Road 781- 684- 5705(W) RMLD bcberinan@comcast.net 46 Grand St. KevinLeyne('09 -'12) 781- 249 -0965 Community Services 34 Larch Lane Matt Wilson ('07 -'10) Public Safety Kevin.lMe@verizon.net n,verizon.net Bryan Walsh ('08-'12) 781- 944 -2884 (H) Economic Development 58 Grand Street Public Safety walshbl@v6rizon.net Harold S. Torman ('03-'10) 781- 942 -2794 (H) Public Works 77 Sunnyside Ave Economic Development Hal.Torman@lantheus.com Marsie West ('03 -`09) 781- 942 -0604 (H) Library 3 Whitehall Lane 617- 382 -2865 (W) Accounting/Finance west.m@mellon.com Tom White ('07 -'10) (781) 944- 6628(H) RMLD 46 Grand St. Public Works ab�dwhite@yEiboo.com Matt Wilson ('07 -'10) (781) 942- 7544(H) Community Services 385 Summer Ave. (339) 927- 7122(W) Library wilson2958@hotmail.com ADMINISTRATION Peter Hechenbleikner phechenbleikner@ci.reading.ma.us ma.us John Doherty jdphefty@reading.kl2.ma.us Gail LaPointe glapointe(o,ci.reading_ma_us Mary DeLai mdelai@_reading.kl2.ma.us Bob LeLacheur blelacheur@ci.reading.ma.us ma.us 942- 9043(W) Town Manager 944 =5800(W) Superintendent of Schools 942- 6604(W) Town Accountant 942- 5800(W) Director of Finance & H.R. (Schools) 942- 6636(W) Asst. Town Manager/Finance 942- 9805(H) Director (Town) Association of Town Committees One Winthrop Square. Boston, MA 02110 617- 426 -7272 or 800 -882 -1498 r r Newsletter December 2009 President's Letter by Pat Brusch, Belmont Advisory Committee Member read the material, and return that signed form to the Town Clerk. An additional requirement is that we all take a test (this can be done on line, and instructions are with the material gas nito print by the Town Clerk). All of us have to take this test, p A Pl out the confirmation and send that to the Town Clerk by P 2010. (Don't stress about the test, it was not difficult to pass). Third, there have been major changes to the Open Meeting Law, and these become effective January 2010,' These changes will affect the way we all do business. Many local officials have asked their town counsel to explain the changes and answer questions. If yours has not done so, I encourage you to ask for this. There are clarifications on what can and• cannot be done via email, posting of minutes, new requirements for posting topics for each meeting, and many other things that we need to pay .attention to. The new law makes Saturdays like Sundays with regard to counting hours for posting of meetings. This is the topic of one of the sessions at MMA's Annual Meeting. Happy New Year to all of you. I hope you had an enjoyable holiday season, Busy times are ahead for all of us. While it appears that the recession is ending, many states, including Massachusetts, are experiencing serious difficulties. There are no easy answers, but all of us are in this together. Thanks to all of you who attended our Annual meeting in October, We tried a new location, and the reviews were very positive. We will plan to return to Franklin next fall. There are three things I would like to alert all of you to as we begin the new year and budget season. First, I encourage everyone to attend the MMA Annual Meeting, January 22 and 23, The Governor will address attendees and will probably give us some idea of what his budget will look like. His budget will be presented the following week). There will be many workshops presented that will help us with budgeting strategies, as well as other topics that are important for us to be learn about. And members of the ATFC board will be at the MMA trade show booth on Friday January 22 between 12 and 2 pm. We will be distributing our handbook and will be there o seen to any questions. If you are there, please stop by us By now all of you should have received a copy of the new Ethics Law along with Conflict of Interest information. All cities and towns are required to get this information to all employees and members of all committees'and commissions Whether.volunteer or not, if we are appointed by a town official, we are part of this. We then have to sign. a form indicating that we have received and As for the ATFC Governing Board, we will begin our monthly meetings in February. Dates and times will be posted on the MMA website. We will be doing another series of regional works o p s 0) andng These seminars generally begin late in the day last about 2 hours. We include sandwiches and beverages and there is no fee to attend; but we do ask for advance registration If any of you would like to host one of these seminars in your area, please let us know by contacting Denise at the MMA. Rope to see many of you. at the MMA meeting in January. ATFC Governin Board Joanne Marden, Andover; Allan Tosti, Arlington; Pat Brusch, . Belmont; Mary McBride, Billerica; Bruce Button, Concord; Paul Joyce, Dedham; Martin Crowley, East Bridgewater; Kimberly Roy, Halifax; Jennifer Gonzalez, Holbrook; Richard Creem, Needham; John Warren, Stoneham; Cinder McNerney, Swampscott: Staff: MMA Senior Member Services Coordinator Denise Baker MMA Annual Meeting, January 22 -23, 2010 The MMA's Annual Meeting P Trade Show offers a range of professional development opportunities for local leaders. This year's 30 Annual Meeting workshops will arm members with the skills, tools and knowledge to move forward during these difficult financial times. Topics include an update from the Division of Local Services, practical financing for redevelopment, and finance and budgeting basics. "Collective Bargaining Strategies for Health Insurance" will discuss how two communities overcame obstacles to get important, moneysaving changes in municipal health insurance. The MMA Annual Meeting, to be held Jan. 22 and 23 in. Boston, is the largest regular gathering of municipal officials in the state. The event features the region's largest trade show, business meetings, annual award presentations, receptions and other activities. The 2009 Annual Meeting & Trade Show was attended by more than 1,100 local leaders and featured more than 200 exhibitors at the Trade Show. This year's Annual Meeting theme is "Local Leaders: Acting Today, Building Tomorrow, Creating a Stronger Future." Speakers include best - selling author Richard Florida and retired New England Patriot Tedy Bruschi, Comedian Paul D'Angelo will provide the entertainment at the closing banquet on Saturday. All MMA Annual Meeting events will be held at the Hynes Convention Center, with the exception of evening receptions and banquet dinners, which will be held at the Sheraton Boston Hotel. Early registration is advised.for the Annual Meeting. The two-day registration rate is $140 for members and $250 for ' nonmembers. Onsite registration is $175 for members and $316 for nonmembers. Annual Meeting registration rates are being held at the same level for the seventh straight year. Program registration forms should be returned to the MMA by mail or fax. Registrations cannot be accepted over the phone. Reservations are also being accepted for the Women Elected Municipal Officials Leadership Luncheon on Friday, Jan. 22, as well as the Friday and Saturday evening dinners. Those who plan to stay in Boston while attending the MMA Annual Meeting are advised to make reservations at the host hotel, the Sheraton Boston, as soon as possible. The MMA has secured a special rate for meeting attendees: $155 for single occupancy or $165 for double occupancy. The reduced rate is only available until Jan. 7, or until all the rooms set aside, for the MMA have been filled. The reduced -rate rooms are expected to sell out quickly, and reservations are accepted on a first -come, first- served basis. Hotel reservations are made directly through the Sheraton Boston at (800) 325 -3535. Members may also register for a room through the MMA Web site. A special link can be found in the Hotel, Directions and Parking area of the Annual Meeting section. The candidates for governor have been invited to take part in a For more information on the Annual Meeting, contact David K. forum to be held on Saturday afternoon, Jan. 23. Costa (ext. 106), and for Trade Show information, contact Karen LaPointe (ext. 154), both at the MMA. _ F.og,.detailed,information on the meeting, visit www.mma.org. ATFC at the MMA Annual meeting The Association's board members will be at the MMA trade -show booth at the annual meeting on Friday, January 22 from noon to 2 p.m. They will be distributing copies of the Finance Committee Handbook and talking to members about what types of services the association should be focusing on during 2010. Come by and visit us! . There will be no business meeting of the ATFC at the conference this year, All official business was conducted at'the October meeting. Members are invited to attend the breakfast and if interested, may attend either the Selectmen's or Councillors' Association Annual Town Meeting. Information on both will be available in your program materials. Or you can sleep in, your choice) Over 200 Attend Annual Meeting Finance committee members from around the state attended the annual meeting on Saturday, October 24. This year's event was held at Tri- County regional high school in Franklin,.allowing the association to reduce the registration fee by $15 per attendee. The day began with a panel discussion on the impact the financial climate is having on municipalities. It set the table for the rest of the day's six educational workshops, Topics included: budgeting 101, drafting and implementing financial policies, school funding, regionalizing services, revenue forecasting and a state budget update from MMA's Legislative Deputy Director John Robertson. All materials from these sessions are available for download at www.mma.org. The 2010 Board of Directors was elected during the business meeting, where a minor bylaw change was also approved. The annual meeting continues to be the best daylong educational opportunity for finance committee members. Next year's program is already being planned. 2010 Governing Board Elected At the Annual Meeting in October, the 2010 Governing Board was elected. President: Pat Brusch, Belmont First Vice President: Kim Roy, Halifax. Second Vice President, John Warren, Stoneham Treasurer, Al Tosti, Arlington Directors: Joanne Marden, Andover; Mary McBride, Billerica; Bruce Button, Concord; Martin Crowley, East Bridgewater; Jennifer Gonzalez, Holbrook; Richard Creem, Needham Past Presidents: Paul Joyce, Dedham and Cinder McNerney, Swampscott All officers are serving their second yearlong term. The bylaw change voted at the annual meeting allows members to serve multiple terms. Spring Workshops — What's the Topic! The association is planning to do more regional trainings next spring. In 2009, we did 2 successful workshops. The first was held in Boston at the MMA office during lunch, allowing members who work in the city to grab a free lunch and learn about a topic during their lunch hour, We had 30 people attend, with MMA staff leading a presentation on federal stimulus funding. We also had success holding an early evening meeting in Andover, focusing on library funding and certification. We are again planning regional trainings and are asking you for feedback on the topic. Please send an email to Denise Baker at the MMA if there's a topic you think would be timely and useful to members. ` increase of Purchasing Threshold Signed into Law In late November, Gov. Deval Patrick signed a supplemental budget bill that includes aprovision to raise the so-called micro- procurement threshold in Chapter 149 from $1 to $5,000, thereby requiring only the use of "sound business practices" for procurements under that amount. [See Chapter 166 ofthe Acts of 2009, Section 30.] The Legislature had passed the bill on Nov. 19. The public construction reform law. passed in 2004 adjusted several public bidding thresholds in state law, inadvertently lowering from $5,000 to $1 the threshold that requires cities and towns to solicit three written quotes for purchases. Since. that time, the MMA and local officials across the state have sought to return the threshold to $5,000. The Special Commission on Public Construction Reform has also supported returning the threshold to $5,000. The MMA and local officials argued that the $1 threshold imposed time and administrative burdens on all municipalities who need to complete small building repairs, requiring them to bring in more than one party to look at every job. The rule also prompted the filing of numerous emergency waivers, which burdened the Division of Capital Asset Management. And the requirement did not take into account "sole source" items or situations where fewer than three contractors are available. r� Property Tax Deadline Extended by 30 Days On December 16, the.Legislature approved a bill that gives cities and towns an extra month, if necessary, to send out quarterly property tax bills. The Department of Revenue has not been able to keep pace with certification responsibilities it must execute in order for local officials to set tax rates and mail out quarterly bills by Dec. 31. DOR officials say that they should be able to complete their certification process within the 30 additional days. The mailing extension only applies in communities that accept the legislation. Acceptance is by majority vote of the city or town council, subject to the municipal charter, or the board of selectmen. The bill was supported by the MMA and the Massachusetts Association of Assessing Officers. Similar legislation has been enacted in past years, Massachusetts Taxpayers' Foundation Publication The MTF has published the 39th Edition of the Municipal It can be downloaded from the Foundation's website, Financial Data booklet. It contains comprehensive financial data www.masstaxpayersfoundation.org or you can pick up a free copy on every community as well as state -wide analysis. at the MMA Annual Meeting. Resource: Massachusetts Budget and Policy Center The Mass. Budget and Policy Center's website proclaims their focusing on transparency. They track longmterm trends in goal is to provide independent research and analysis of state education, health care.and tax policy. MassBudget provides budget and tax g policies, as well as economic issues, that affect independent research in many areas that affect local low- and moderate income people in Massachusetts. government. The center's Executive Director, Noah Berger, has been a guest The Center and its website, www.massbudget.org, are a great speaker at our Annual. Meeting. resource, The Center performs research and analysis on the state budget, 8008 Edition of the Finance Committee Handbook Available The Finance Committee Handbook has been revised and is now The handbook reflects changes made to Massachusetts General available to all member communities. Laws since the previous update in 2008. This version includes updates to all chapters, notably school To request a copy, contact Jonelyn Langestein at the MMA. finance, Proposition 2 `/E and cash management. Best wishes for a Happy and Healthy New Year from the ATFC! n Page 1 of 3 LeLacheur, Bob From: Schena, Paula Sent: Tuesday; February 09,2010 4:46 PM To: LeLacheur, Bob Subject: FW: RE: I'm a Town Meeting Member from Precinct 7 Please copy to Fincom From: Hechenbleikner, Peter Sent: Tuesday, February 09, 2010 3:04 PM To: Reading - Selectmen Cc: Schena, Paula; LeLacheur, Bob Subject: FW: RE: I'm a Town Meeting Member from Precinct 7 I/c Board of Selectmen c FINCOM 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.org email townmana9er @ci.reading.ma.us Please let us know how we are doing - fill out our brief customer service.survey at http://readingma- su rvey.virtualtownhall. net/survey /sid/603ffd2e45471753/ From: LeLacheur, Bob Sent: Tuesday, February 09, 2010 10 :19 AM To: k.weldl @verizon.net Cc: Hechenbleikner, Peter; Doherty, John Subject: FW: RE: I'm a Town Meeting Member from Precinct 7 Hi Karl — sorry for the delay, I've had to ask a lot of different folks for this information and here's what I have: 1.)- What percentage of all town employees (meaning those who collect any type of pay from the town) DO NOT live in Reading? 47% of current employees do not live in Reading. This figure is skewed slightly by a large number of Reading residents that work at our elections — if you disregard them, the split is closer to 50% o in and 50% outside of Reading. 2.) What is the percentage increase in the town budget since 2006? In FY06, the Reading general fund budget was $64.6 million. The tentative proposed FYll Reading general fund budget is $71.9 million. This is an increase of $7.3 million, or 11.3% over five years (a bit less that 2.2% annualized). The largest single factor in this increase has been.health insurance which has increase by $2.2 million, or 39.7% (6.9% annualized). While high, this 6.9% is below recent industry. figures due to significant benefit changes along'the way. ni��innsn Page 2 of 3 3 3.) How many positions have been eliminated for FYI 0 and proposed FYI 1? RAILD eliminated 3 positions in FYIO and the FY11 budget is in progress. Their funding is from ratepayers spread across four towns and very distinct from Reading town government/school department. The town and schools combined have eliminated 22.7 FTEs in the FYIO budget and have proposed to eliminate another 8.3 FTEs in the FYI I budget. Thanks, Bob LeLacheur Assistant Town Manager/Finance Director 781-942-6636 From: Hechenbleikner, Peter Sent: Thursday, February 04, 2010 8:28 AM To: LeLacheur, Bob Subject: FW: RE: I'm a Town Meeting Member from Precinct 7 Peter I. Hechenbleikner Town Manager Town of Reading 16 Lowell Street Reading MA 01867 phone: 781-942-9043 fax 781-942-9071 web ww.w.readingma.org email townmanaqer ci.readina.ma.us Please let us know how we are doing -fill out our brief customer service survey at hftp://readingma- survey. virtualtownhall.net/survev/sid/603ffd2e45471753/ From: k.weldl@verizon.net [mailto:k.weld1@verizon.net] Sent: Wednesday, February 03, 2010 5:20 PM To: Hechenbleikner, Peter Subject: Re: ,RE: I'm a Town Meeting Member from Precinct 7 Thank you Peter. Yes, all people, who work for or are paid by the town. (Income and/or benefits) On Feb j, 2010, Hechenbleikner, Peter <phechenbleikner@ci.reading.ma.us>, wrote: I'll have the Assistant Town Manager get as much of the information as you requested together for you. I assume your request includes Town, School, and Light Department. Peter I. Hechenbleikner Town Manager Town of Reading 16 Lowell Street Reading MA 01867 phone: 781-942-9043 fax 781-942-9071 web www.readfn-qma.b'rq ?/1 ?/?()l Page 3 of 3 email townmana er ci.readinq.ma.us Please let us know how we are doing - fill out our brief customer service survey at http:f/readingma- survey.virtualtownhall.net/survev/sid/603ffd2e45471753/ From: [Tailto:k.weld1@verizon.net] Sent: Wednesday, February 03, 2010 3:27 PM To: Reading - Selectmen Subject: I'm a Town Meeting Member from Precinct, 7 Hello, I have some questions that I would like answered. 1.) What percentage of all town employees (meaning those who collect any type of pay from the town) DO NOT live in Reading? 2.) What is the percentage increase in the town budget since 2006? 3.) How many positions have been eliminated for FY 10 and proposed FY 11 ? If I could get the answers to these questions I'd appreciate it. Karl Weld Town Meeting Member, Precinct 7 2/12/2010