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Home My WebLink About2010-10-27 Finance Committee PacketThe Town of Reading - FINCOM: Financial Forum H http://www.readingma.gov/Pages/ReadingMA,MeetingCal/SO15D6FI... FINCOM: Financial Forum. II Wednesday, October 27, 2010 at 7:00 PM Senior Center Printer-Friendly Version Financial Forum II (Expenses) -Agenda October 27, 2010 Senior Center Google Search L)/dMit(7N +CAU~1 s PAM~ v 4A « i CDMM01% CAUSE 1 of 2 7:00 - Call to Order 7:05 - Financial Update Projected FY12 Revenues Projected FY 12 Accommodated Costs Operating Budget Guidance 7:25 - Financial Forum I (Revenue) Recap Top Opportunities Identified Next Steps / Follow up 7:40 - Town/School Expenses Simplified overview of cost of services provided Expense Reduction Initiatives Explored 8:00 - Brainstorming Session - Potential Expense Reductions 8:30 - Debrief & Identify Top Opportunities 8:50 - Summary & Next Steps 9:00 - Close/regular FINCOM meeting begins Budget Calendar: Oct 27 Jan 24 March 2, 9, 16, 23, 30 April 25 Financial Forum II - Expenses & Budget Guidance Financial Forum III - State Aid Updates & Capital FinCom Budget Review Town Meeting 10/27/2010 11:14 AT =0 C= Town of Reading Financial Forum October 27, 2010 Update on Reading's Local Budget - FY10: Revenues & Expenditures - FY11: Revenues & Reserves - FY12: Revenue & Accommodated Costs Forecast rWa „l>r~ ~u Financial Forum October 27, 2010 FVIORecurring Revenues: Total S57.613 under FY10 Budget FY10 Actual Change Prop. Taxes $49.50 mil $49.77 mil 0.27 mil Local Revs. $ 5.41 mil $ 5.40 mil 0.01 mil Intergov't $13.04 mil $12.72 mil $ 0.32 mil TOTAL $67.96 mil $67.90 mil 50.06 mll U ®C= Financial Forum October 27, 2010 FY10 Expenditures: Total $1,210,734 under budget - Negotiated Lower Health Ins Premium -$215k - Salaries - various unfilled.vacancies -$207k - Reserve Fund unused 79k - Rubbish disposal (less tonnage) 75k - Gasoline 50k - Regional School (less students) 47k - Town-wide Various Accounts -$251k - School-wide Various Accounts -$287k Financial Forum October 27, 2010 FYI 1 Revenues Total S50,000 under budget (use Free Casb in Nov.'1'M) • -$350,000 cut in Federal ARRA • 4330,000 out in Federal Medicaid . • -$150,0001=1 charges (permits, ambulance billing) $830,000 in reductions • +$350,000 Smart Growth • +$150,000 New Growth • +$140,000 Meals tax +$105,000 state aid • 35,000 Reading Ice Arena Authority $780,000 in increases / Financial Forum / October 27, 2010 Reserves as of November 2010 - Free Cash 6130110 $ 4,953,340 • November TM Adlcle 4 - $ 87,000 November TM Adlcle 11 - $23D,GDD $ 4,636,340 - General Stabilization Fund $ 1,524,831- - FINCOM Reserves $ 150.000 - TOTAL $ 6,311,171 is 8.7% of estimated $72 million FY12 net available revenue '!alai excludes funds designated for spectOc purpose Financial Forum October 27, 2010 FYI 2 Revenues (projected) FY11 FY12 Change Prop. Taxes $51.1 mil $52.5 mill +$1.4 mil Local Revs. $ 5.5 mil $ 5.3 mil 0.2 mil ' Intergov't $13.2 mil $11.6 mil 1.6 mil Trf & Avail $ 4.2 mil $4.2 mil unch TOTAL $74.0 mil $73.6 mil - $0.4 mil Financial Forum October 27, 2010 ACCOMMODATED COSTS: FY12 preliminary +5% $12.7 Mil Benefits +8% (Health ins +1u%) $ 1.2 mil Capital +20% (per 5% FINCOM policy) $ 6.0 mil Debt -2% (per 5% FINCOM policy) $ 2.3 mil Energy -3% $ 0.6 mil Financial +11 % $ 4.1 mil Education - out of district SPED +11 % $ 0.4 mil Education - Vocational +13%. $ 2.8 mil Miscellaneous +0% $30.2 mil Total (prelim.) Accom. Costs + $1.5 mil vs. FYI 1 Financial Forum October 27, 2010 FY12 Budget Summary Revenues $0.4 million Accommodated Costs + $1.5 million Operating Budgets - $2 million (41/6) > FINCOM guidance 0% & use reserves FY12 Budget Overview Revenues Fate of question #3 • Accommodated,Costs Health Ins./Energy Operating Budgets Plan to use reserves? ft) Revenue Enhancement Ideas from Reading Financial Forum September 15, 2010 Bucketed List Evaluation Criteria Opp Cost / Being Ease to Implement Ongoing Community Unintened Who Should FinCom Next # Ideas That Received Votes Votes Done Revenue Implement Cost Cost Impact Consequences Carro Forward? Contact Steps ONE TIME REVENUE Sale of Town Land (Oakland Rd-last big parcell 25 High Medium None TBD Varies by lot Selectman ONGOING REVENUE 1 School and Town Land: Opportunities 49 Cell Towers 20 Yes Medium Low-Medium TBD TMgr/Selectman Advertising/Billboards 15 Yes Medium TBD Selectman/SC Wind/Solar Power Generation and Sell Back 9 No RMLD Sell Timber in Town Forest . 5 Yes DPW/Town Forest Committee 2 School and Town Facilities: Opportunities 24 Rental of existing space 15 Yes Low Low Selectman/SC Naming Rights 9 No Selectman/SC 3 Fees: Introduce New Ones 18 Pay as You Throw Trash Fee 6 No Selectman Preferred Parking Fees at RMHS 6 No Schools Billing At Fault Accidents. 5 No. Public Safety Wireless air rights billing 1 No 4 Economic Development 17 Low-Medium Positive Town Economic Development/PR 12 Yes Selectman Tax Incentives for New Business 5 No Selectman 5 New Initiatives 16 TBD TBD Grant Writers to Bring in 5 No Selectman/SC Endowed Positions at Schools 5 No Schools Road Races Program 3 No Recreation Reading Branded Credit Card 2 No Selectman/SC Remove state gas tax on Town 1 No Legislators 6 Fees: Increase existing 12 Low-Medium TBD Parking Fee at Depot 10 Yes Selectman Raise Parking Tickets & Fines / Parking Meters 1 Yes Selectman Increase RMLD annual in lieu of Tax Payment 1 Yes Selectman Increase Ice Arena payments 0 Yes Selectman 7 Gifts/Donations/Sponsorships 12 Low TBD Sponsoring Town Trees, Benches, Lights, etc. 7 Yes Selectman Focused Approach for Gifts/donations 5 No Selectman/SC 8 Expand Service Offerings 6 Low-Medium TBD Offer Ambulance Services to Other Towns 6 No Selectman Total Votes 179 FY11 revenue sources and uses of funds associated with a typical $400,000 single family home.in Reading Source of Funds FY 2011 property taxes $ 5,500 68% State & Federal Aid $ . 1,422 18% MV Excise taxes $ .258 3% RMLD Distribution $ 234 3% Transfers & Other $ 220 3% Charges & Permits $ 189 . 2% Other Local revenues $ 134 2% Cash Reserves $ 101 1% Meals tax $ 15 0% TOTAL $ 8,074 Use of Funds Summary FY 2011 Town $ 1,950 24% Schools & Facilities $ 3,997 50%. Shared Costs $ 2,127 26% TOTAL $ 8,073 Wages $ 4,449 55% Expenses $ 3,624 45% TOTAL $ 8,073 Use of Funds Details FY 2011 Public Safety $ 834 10% Public Works $ 583 7% Accounting & Finance $ 210 3% Library $ 132 2% Community Services $ 117 1% Town Administration $ 74 1% Town Gov't $ 1,950 24% Regular day $ 2,315 29% Special Education $ 995 12% Health/Athl/ExtrClTech $ - 132 2% School Administration $ 90 1% Sch. Building Maint.. $ 385 5% Town Building Maint $ 80 1% Schools & Facilities $ 3,997 50% Benefits -Health/Life Ins. $ 821 10% Debt + Capital $ 770 10% Benefits - Retirement $ 319 4% Benefits - Other $ 121 1 % State Assessments (META). $ 61 1 % Vocational Education $ 35 O% Shared $ 2,127 26% For a $400,000 single family home in Reading, taxes are $5,500 / year. Along with those property taxes, the Town receives other types of revenue that help to pay for a variety of services. The largest comes from Reading income & sales taxpayers via State Aid - and recently some smaller amounts of Federal Aid; and via the excise tax of autos and boats. RMLD pays an annual amount as an ownership distribution, and then there are a variety of local charges (such as permit fees) and transfers (such as the Reading Ice Arena annual payments). In addition to the $5,500 property tax, another $2,574 in funding from these other sources helps pay for general fund expenses every year. There are three main use of funds categories: the Town government, the School and Facilities departments, and a third group of costs that are shared by each of the first two groups. Another way to look at the uses of funds is by wages paid to employees, and non-wage expenses. Some of these expenses are related to personnel (such as benefits listed below), but many are independent of the workforce, The main functions of Town government include the categories seen on the left. Police, Fire and Dispatch make up the single most expensive service that are provided for the Town. The $400,000 homeowner receives $834 of service from Public Safety, and so on down the list. These services do not include capital projects such as new playgrounds or road improvements, which are described below as shared debt & capital costs. The main functions of the School and Facilities departments are shown on the left. That $400,000 homeowner receives $2,315 of Regular day educational services, $995 of Special educational services, and so on down the list. Historically the 2-1 ratio between the Schools/Facilities and the Town government is typical, here shown as 50% vs. 24% for FY11 budgets. Shared costs include benefits costs - both for active and retired employees. At 10%, health/life insurance has always been the largest component. Over the past decade it has trended up from about 8% to 10% of the budget. In other cities and towns it is often 15-20% of total budgets: Reading has taken many proactive approaches to reign in the costs of healthcare insurance. Debt and Capital is an important long-term investment for the Town to make in buildings and equipment, including road repairs and recreational projects. 0 Expense Management Evaluation Criteria Opp Cost/ Being Ease to Cost to Ongoing Community Unintened Who Should FINCOM Next ONETIME EXPENSE T Arrange MSBA early payments on RMHS T Refinance old School debt Impact on CIP FY09-FY13 Coolidge debt Sch Facilities Department constructed some election equipment, vs purchase Y Medium High effort _ None Yes(1) Yes(2) Finance Refi in FY14 - (1) To reduce the amount of the override that we assess to the taxpayers. (2) Additional interest expense on the MSBA portion of the $35 million debt if we don't refinance in a few years. Y $205k npv Easy Low None None None None +$557k Finance Refi in FY12 Y $2,100 Easy Low None None None None Benefits/Personnel T/S Health Insurance - tiered program Change from social security to ICMA OBRA for those not in T/S a retirement system Email direct deposit advices to staff (22% and increasing) to T avoid printing costs Modification of non-union benefits (sick leave, sick leave T buy-back) Sch Offering early retirement to all school employees Collective Bargaining - constrained salary increases and modification of benefits (sick leave, sick leave buy-back, T vacation) T/S Freezing salaries - non-union employees T Reduced hours of work across the board T/S Imposed unpaid furloughs T Cut salaries Reduction of staff (attrition where possible to avoid T unemployment expenses) T a. Eliminate Coordinator of Volunteers T b. Eliminate Assistant Bldg Inspector ' Costs shift to Y $590k/yr Coll Barg High effort None emp'ee Less emp'ee y $105k/yr Difficult High effort $20k/yr None investment choice y Easy None None Less emp'ee Y Medium High effort benefits N Y Coll Barg High effort Less emp'ee benefits Less emp'ee y Medium High effort benefits N N N Y Medium Low Tasks done by y 3 depts. Y C23) c. Eliminate Technology Librarian/Instructor d. Eliminate one Firefighter e. Eliminate Permits Coordinator f. Eliminate Staff Planner .Reduced hours of staff where feasible (T Mgr office) Reduce hours of seasonal Assessor Reduce hours of seasonal DPW Reduced staffing levels for library Sunday hours (skeleton crew) Reduction in school department personnel: a. Teachers - 7.0 teachers over last two years b. Paraprofessionals-18.1 paraprofessionals over last 2 years c. Secretaries-1.2 Secretaries this year d. Custodians - 5.0 custodians over last 6 yrs e. Administrator-Assistant Dir. of Facilities f. Administrator-Assistant Superintendent Outsourced custodial services at RMHS and one shift at Coolidge Middle School Outsourcing custodial services at all buildings Maximize the use of student teachers and volunteers Increased volunteer hours and senior tax workers (Town Clerk's office) Use of parent volunteers to teach classes Expanding online learning to replace existing teaching staff Going to a 4 day school week Reducing number of student days from 181 to 180 Expenses/Personnel Reduction in professional development/increased use of T electronic webinars Reduction in curriculum and instructional materials-65% Sch reduction over last 2 yrs Reduction in professional development- 65% reduction Sch over last 2 yrs Expense Management Evaluation Criteria (ab Eliminating professional development inservice time for Sch non-teaching staff T Eliminate out of state Professional Development T Reduce Assessors use of outside consultants Expenses/Financial MIIA Rewards seminar participation - earn credits on T/S insurances T Earn upgraded bond ratings Establishment of some revolving funds to tie expenses .directly into revenues (Inspections, Mattera Cabin, Health T Clinics, Library Materials) . Purchase hand-held scanners ($1600) to save annual lock box fees, as well as improve accuracy of information and T speed of processing payments T Reduce library % materials budget - rely on gifts Expenses/Operational Sch Performance Contracting to reduce energy expenses Amend hours at Town Hall to save operating costs, and T improve customer service Removal of small appliances (refrigerators, microwaves, Sch etc.) from all classrooms Use of computer software to automatically shut down all Sch computers each night Sch Use of automated software based on facility rentals Server and.computer virtualization which reduces hardware Sch and energy costs _ Network virtualization to reduce energy costs, improve T reliability and allow remote access T Slow down PC replacement cycle T Cancelled PC repair and maint. contract w/.Noble T Conversion of fleet to hybrid to reduce fuel expense Anti vehicle idling to reduce fuel use (and improve the T/S envirionment Aggressive preventative maintenance to prevent costly Sch emergency repairs Expense Management Evaluation Criteria Opp Cost/ Being Ease to Cost to ongoing Community . Unintened Who Should FINCOM Done Expenses Implement Implement Cost Impact Consequence Carry Fwd Contact N Y Easy. Low None Less PD N Y $35k/yr High effort None None None , All Staff y High effort None None None Finance y Y $10k/yr Easy None None None N Y $325k/yr High effort High effort y High effort _$20k/yr Y Y Y y Y Difficult $50k+ N y $6k/yr . y $5-10k/vehicle y Y Next Steps (:Q_1 Use of parent volunteers to maintain PCs or technology Sch infrastructure T Modification of rubbish and recycling program Elimination (phase-out) of plowing church parking lots to reduce snow plowing expense (also to comply with State T Constitution) Public/Private partnerships (tree watering, adopt an T island)) T In-house PBX phone system Sch Increased recycling T/S Active paper re-use and reduction efforts T/S Elimination of ink jet printers T/S Networked photocopiers and printers Sch Setting photocopier settings to automatically duplex T Document storage initiative to reduce paper Greater use of electronic communication to reduce printing/mailing costs (YCC,.Board agendas, electronic T/S forms to parents) Sch Use of electronic education tools (blogs, wikis, etc.) Expenses/Cooperative Efforts T Regional programs (Veterans Services) T Regional programs (Dispatch) T Regional programs (Assessors) . T Regional programs (GIS) T Regional programs (Technology) Use of regional transportation collaborative for out-of- Sch district special education Special education collaborative programs whenever possible for special education children who need special Sch programming not offered in Reading Schools Coordinate bulk shipping of text and materials with other Sch districts Purchasing materials through Staples and WalMart when Sch they have sales Participate in joint purchasing collaborative with 65 other communities for school, office, and custodial supplies Expense Management Being Ease to Cost to I Done Expenses Implement Implement N Y High effort $10,000 to y $25,000 per year y High effort Y $30k/yr Medium Y Easy Y Easy Y Easy Y Y Easy Y $50k+ Y Y Y TBA Difficult TBA Difficult TBA Difficult TBA Difficult Y Y N N Y Evaluation Criteria Opp Cost/ Ongoing Community Unintened Who Should FINCOM Next Cost Impact Consequence Carry Fwd Contact Steps None None None Expense Management Evaluation Criteria Joint bidding/purchasing (Office supplies, sand and salt, T fuel) Library saves on processing supplies by participating in T statewide purchasing cooperatives Resource sharing/Reciprocal borrowing and lending results in 33,000 books borrowed for Reading residents from other libraries in one year, savings = $660,000 (purchase cost = T $20 each) With the recent municipal reform act passed in July, we are now able to purchase from national collaborative; we have, Sch as a result, just joined the National Joint Powers Alliance. Use of state contracts whenever possible (technology purchases, photocopiers, maintenance supplies, Sch maintenance services, etc.) Re-negotiation of maintenance contracts and equipment Sch leases Creation of in-district special education programs to bring students back to Reading from costly out-of-district Sch placements In-sourcing of costly special education consultative and Sch therapeutic services In-sourcing of maintenance services (carpet shampooing, Sch exhaust fan maintenance, etc.) Opp Cost/ Being Ease to Cost to Ongoing Community Unintened Who Should FINCOM Next Done Expenses Implement Implement Cost Impact Consequence Carry Fwd Contact Steps Y Easy Y Easy Y Easy. Y Al TGRIJATF RnAnWAV 1 AVnIIT CAUS EWAY ROAD ESTIMATED BETTERM ENT ASSESSM ENTS October 26, 2010 MAP PARCEL ADDRESS FRONTAGE ASSESSMENT NOTES 31 1 RMLD 31 $ 3,694.11 fonta a shown on Assessors plan is 31 2 31 Causeway Rd, Reading, MA 60.58 $ 7,219.00 Calculated Frontage 31 3 33 Causeway Rd, Reading, MA 60.56 $ 7,216.62 Calculated Frontage 25 57 RMLD 221.28 $ 26,368.79 Calculated Frontage 31 4 RMLD 178.96 $ 21,325.73 Calculated Frontage 31 5 TOWN 169.24 $ 20,167.45 Calculated Frontage 25 46 80 Causeway Rd, Reading, MA 129.20 $ 15,396.09 25 47 74 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 48 66 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 49 60 Causeway Rd, Reading, MA 120.00. $ 14,299.78 25 50 52 Causeway Rd, Reading, MA 126.47 $ .15,070.77 25 51 53 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 52 61 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 53 65 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 54 73 Causeway Rd, Reading, MA 120.00 $ 14,299.78 25 - 55 81 Causeway Rd, Reading, MA 112.81 $ 13,442.98 I "P GbU,UUU.UU I Total private road frontage 1930.10 71,556.09 Estimate for the construction of the private section of roadway $ 230,000.00 cost per linear foot =1 $ 119.16 CAUSEWAY ROAD FRONTAGE ON EXISTING PUBLIC WAY September 23, 2010 MAP PARCEL ADDRESS FRONTAGE NOTES 31 6 101 Willow St, Reading, MA 246.64 Public - frontage is derived from record plans 31 7 (TOWN) 96.69 Public - frontage is derived from record plans 31 9 STATE 374.61 - ' Public r Voted - Approved by Board of Selectman Oct. 26, 2010 0 PUBL IC PRIV ATE CAUSEWAY ROAD RESURFACING AND RELATED WORK -ALTERNATIVE # 2 ' STATE SECTION STATE SEC770N 1,110-SECTION 'EXTENSION'SECT70N milUpatchioveday Reclaim Reclaim mill/oveday Total Estimated Sumof dloxtended LOwaOSt GaBar(Sta0+00) Sta3+00to Eodnf State ITEM QuanOty Unit Unit Price prices to Sta 3+00 Section Sta 4+61 St. 4+61 to St. 9+75 Sla 9+75 to end Sla 13+ Construction Bigness 16.00 SF $ 20.00 5320.00 16 320.00 - 5 00 2 - 50 00 Excavation 166.00 CY S May $4,200.00 33 825.00 133 3,32 . . Tree Removal>1- 12° 7.00 Each S 1,500.00 610 Sa0X0 - - 6 9 ODD00 1 1500.00 Tree Removal< 12" 5.00 Each $ 800.00 54.000.00 - 3 2.400.00 2 1,600XD Trim 15'OakTree 1.00 Each S 200.00 5200.00 1 200.00 - - Trim 35' Oak Tree 1,(30 Each S 400.00 $400.00 1 400.00 - Rome- Basketball Hoop - Each S 200.00 50.00 - - Remove and Reset Mailboxes 200 Each $ 125.00 $250,00 2 250.60 - Relocate Hydrant - Each $ 800.00 50.00 - RelowteUtility Pote(RMLD) 1,00 Each S 10000.00 510000.00 - 1 10000.00 0 Removeand Dispose Bushes - - LS S 100.00 50.00 - - 2 2400 00 Rebuild existing sandstone/brick walkway 200 Per $ 1200.00 $2,400.00 - . Pavement Excavation 8.00 CY S 35.00 5280.00 6 210.00 - 2 70.00 147 24 255 00 Cutout/Patch (Includes biL conc.) 233.00 SY 5 165.00 $36,445.00 86 14190.00 - , . Granite Curb -Straight (Public Cost to Supplement Private Brain Cost) 1884.00 LF S 3200 522400600 430 13,760X0 270 8,640.00 758 24256.00 426 13.6320D Granite CUtb-Radius 178.50 lF S 3200 $0.00 - - 178.5 5712.00 Granite Curb-Throat Stones Granite Curb - Curb Returns 30.00 4200 Each Each $ 235.00 S 235.00 50.00 $9,870.00 2 470.00 4 - 940.00 12 18 2,820.00 4,230.00 . 18 18 4,230.00 4.230.00 Gravel Borrow 166.00 CY $ 30,00 54,980.00 - 33 99D.00 133 3,980.00 - Fine Grading and Compacting 1801.00 BY S 1.50 52701.50 430 645600 1371 2056.50 - Sidewalkcutou0patch 47.00 BY $ 180.00 $8,460.00 - 47 8,460.00 5 Sidewalk overlay (1.5'1 474.00 7 BY EA $ 18.00 S 165X0 5853200 51 155 00 1 - 165 00 2 - 330.0) 10 4 180.00 560.00 464 8,3 200 - Adjust Drainage and Utility Structures .00 , . 5660.00 . - 4 660.00 Rebuild Drainage and Utility Structures 4.00 VF 5 155.00 2 5 000 00 New Catch Basin 200 LS 5 500.00 55,000.00 - . . New Drain Manhole 1.00 LS 5 300.00 52,300.00 - 1 2.30D.00 - 12" RCP 18.00 LF S 50.00 $9000D - 18 900.00 Abandon RCP - 30.00 LF S 40.00 51,200.00 - - 30 1.200.00 1 AdjustWaterGates 3.00 EA S 125.00 5375.00 1 125.00 2 250.00 Water gate casting (In place, to grade) 1.00 EA S 150.00 510.00 1 Stone bound casting (in place, to grade) 1.0D EA S 85.00 385.09 1 85.00 - R BltCOne.IN der B. Top Handwork 42,00 TON 5 135.00 56670.00 3 405.OD 3 405.00 25 3.375.00 11 Bituminous Concrete Base Course (J'J 28200 TON 5 75X0 527 150X0 74 5 550X0 208 15 600.00 Bituminous Concrete Leveler Course (1') 99.00 .TON S 75.00 57,425.0 10 750.00 2(14 00 89 75 Spray Tack Coat 217.00 GAL S 3.00 5657.00 51 153.00 23 69.00 68 . ete To Course(2'1 u C Bit i 457.00 TON S 75.00 $34275.00 95 712500 49 3675.00 151 11325.00 16 12,150+00 p oncr um no s Hot Rubberized Seater 1457.00 LF S 1.00 51.457,00 380 380.00 161 161.00 514 514.00 402 ld Pl C 330.00 SY S 285 56640.50 860 2451.00 - - 1470 4189.50 ane o Reclaim Base Course 1,621.00 SY S 275 $4,457.75 - 458 1259.50 1163 3198.25 - DwinConstruction (less public curb cost of $22,400) '1 LS 555000.09 532600.(10 - - 1 3260000 210 - 00 1 785 CrackSeaiing 360.00 Gat S 0.50 $306000 150 1275.00 . . RBRWoad Pole Fenceat RMLDProperty 01.00 LF- $ 45.00 53.645.00 81 1 3645.00 135 00 - - lime-cidispose section of fence at#SVRMLD Prop. Line TAD LS 5 135.00 $135.00 - - . d 1370.00 SY S S.SD 57,535.00 200 1100.00 145 787,50 445 2.447,50 500 3,180.D0 LeamandSec Traffic Markings 1 LS 5150.00 5150.00 1 150.00 Miss supplies-stak., paint loamboard, etc 1 LS S 75.09 575.00 1 75.00 - fi87 20 3 7 13 (759 13 1 1 005 23 Traffic Control 1 LS S 886.95 522 8116.95 1 4,325.40 1 . . , . , . 5 152 450.36 5 107527.73 Revised Through October 13, 2010 $ 34.22267 S 4,757.94 S 4,066.92 S 15,245.04 S 10,152.77 3325,799.37. $ 52,337,34 - $ 44,736,12 S 167,695.41 $ 111,680.50 TOTAL COST PUBLIC SECTION B DRAIN SUPPLEMENT (Cost 100% TOWN) S 97,073.46 Total Cost Curbing Private Section $50,650.00 TOWN SHARE OF BETTERMENTS 5 20,167.45 - - TOTALTOW N SHARE OF PROJECT S " 117,240.91 TOTAL COST PRIVATE SECTION= S 279,375.91. Less Private Curb Cost - 550.659,00 Total Cost Less Board Authorized Reductions -OCL 26, 2010 5 228,725.91 Board Authorized Reductions -Oct 26, 2010 - Highlighted Cells "Cost of Betterments to be Assessed - Say 5 230,000.00 (E) Or 1?~90 Finance Committee Meeting August 4, 2010 o wo INCORQ¢P~ Conference Room, Reading Town Hall The meeting convened at 7:35 PM in the Conference Room of Town Hall. FINCOM Members Present: Chair George Hines, Vice Chair David Greenfield, members Barry Berman, Mark Dockser, Frank Fardy, Kevin Leyne, Harold Torman and Marsie West. Members Absent: Bryan Walsh Also Present: Assistant Town Manager/Finance Director Bob LeLacheur. There being a quorum the Chair called the meeting to order at 7:35 pm. Public Comment: No comments. FINCOM reorganization: Outgoing Chair turned the meeting over to Bob LeLacheur, who opened the floor to nominations for FINCOM Chair for FYl 1. On a motion by Berman, seconded by Greenfield, the name of Marsie West was raised. -There being no other names put forth, LeLacheur closed the. nominations. By a vote of 8-0-0, Marsie West was nominated for FINCOM Chair. LeLacheur turned the meeting over to Ms. West, who opened the floor for nominations for Vice Chair. On a motion by Hines, seconded by Berman, the name of David Greenfield was raised. There being no other names put forth, West closed the nominations. By a vote of 7-0-1. David Greenfield.was nominated for FINCOM Vice-Chair (Greenfield abstaining). FINCOM liaison assignments: On a motion by Berman, seconded by Hines, the names of Chair Marsie West and Vice Chair confirmed by a vote of 8-0-0. West reviewed the other liaisonassignments, asking if there were preferences among the members. Hines asked that he be a liaison to the library, in light of his work on the Municipal Building Committee. A few members indicated an interest in the School department. The new temporary list will be attached to these minutes, and finalized during the next FINCOM meeting. FINCOM FYII meeting schedule: Financial Forum I will be held on September 15'~' with a focus on alternative revenues. Mr. Greenfield asked that expense reduction initiatives be publicly discussed this year as part of the FY12 budget process in order to educate the community and Town Meeting. Mr. Hines said that FINCOM has pursued expense reductions and efficiencies for every year since he can recall. 9 Financial Forum II will be held on October 27 with a recap of the Town's reserves position, and a look at estimated FYI 2 revenues. Given these two, discussion about use of free cash in the FYI 2 budget will ensue, and preliminary budget guidance will be given by the, FINCOM to all departments according to the historic approaches on accommodated and non-accommodated costs. Mr. LeLacheur indicated on a preliminary basis that Town Accountant Gail LaPointe suggests the Town will regenerate a solid number towards free cash from the FY 11 budgeted amounts not spent. Mr. Berman said this is always a double-edged sword' on the one-hand this implies the budgets'are too high, but on the other given the nature of different areas turning back fields each year that departments do a good job in not spending money unnecessarily. Financial Forum III will be held on January 26, 2011 unless. important budget information becomes available sooner. Town-wide technology initiatives: Mr. LeLacheur reviewed a number of projects (see attached). Mr. Greenfield emphasized that he would like to see some cost and effort estimates to have a fully redundant network and further details about backup procedures, as well as a continuity of operations plan (such as has been done by Chief Burns for all departments as a town-wide overview. Mr. LeLacheur said he would bring the request to the next Department Head meeting in two weeks: Multi-Board Revenue Discussion: Mr. Berman would like to suggest, a School Committee-Selectman-FINCOM ad-hoc committee be formed. He requested a map of town-owned land. He suggested the Town should provide the following information to the general public: already cutting expenses; already funding activities with grants; what limits there are on what activities the Town is allowed to do (for example, it cannot invent and sell a product); what options the Town can use to raise revenues, and a thorough review of all fees collected versus other neighboring municipalities. Mr. Dockser suggested a brainstorming session at the first financial forum in September, and volunteered to lead an effort as he has done in the private sector. Ms. West asked Mr. LeLacheur to contact the other major boards with an overview of this. discussion. On a motion by Mr. Hines, seconded by Mr. Leone, FINCOM voted to approve the Minutes of June 9, 2010 as amended by a vote of 7-0-1 Berman abstaining). On a motion by Mr. Berman, seconded by Mr. Hines, FINCOM voted to adjourn at 9:40pm by a vote of 8-0-0. 9 OF R~gO'y Finance Committee Meeting y•~i Financial Forum or Iwo 639'INCORQO¢P September 15, 2010 The meeting convened at 7:00 PM in the Conference Room of Reading Public Library. FINCOM members present: Chair Marsie West, Mark Dockser, Bryan Walsh, Barry Berman, Kevin Leyne, Francis Fardy and David Greenfield. Members Absent: George Hines and Hal Torman. School Committee Members present: Chris Caruso, Karen Janowski, Hal Croft, David Michaud, Chuck Robinson and Jared Beaulieu (School Committee student representative) Board of Selectmen members present; James. Bonazoli, Rick Schubert, Ben Tafoya, Camille Anthony, Steve Goldy Board of'Library Trustees present Vicki Yablonsky, Richard Curtis, Jeff Doucette and Cherrie Dubois EDC member Russ Graham Town Meeting members John. Arena, Bill Brown and Tom Ryan Also Present: Town Manager Peter Heckenbleikner, Town Accountant Gail LaPointe, Assistant Town Manager/Finance Director Bob LeLacheur, Superintendent of Schools John Doherty, Assistant Superintendent Patty de Garavilla, Director of Finance and Operations Mary DeLai, Greg Burns (Fire Chief), Jim Cormier (Police Chief), Ruth Urell (Library Director), Jeff Lager (Public Works Director), Jane Kinsella (DPW Business Manager), David Mancuso. Press: Matt Casey (Reading Patch) and Paul Feeley (Daily Times Chronicle). There. being a quorum the FINCOM Chair called the meeting to order at 7:09 pm. The Chair of the Selectmen also called the Selectmen's meeting to order and the Chair of the School Committee called the meeting to order. The Board of Library Trustees called, their meeting to order at 7:30 PM. Ms. West gave opening remarks and introduced everyone to the first Financial Forum of the budget year. Assistant Town Manager & Finance Director Bob LeLacheur reviewed the budget calendar noting that there will be three Financial Forums this year (September 15th, October 27th and January 27th). The School Committee's budget meetings are also shown on the meeting handout. Mr. LeLacheur explained the budget process. Generally, the Financial Forums are held earlier in the year in the fall and winter while the Finance Committee begins meeting at the end of February or early March to prepare the budget for Annual' Town Meeting in the spring. The Town Manager's budget is finalized in February. Revenues: Current Estimates: Town Accountant Gail LaPointe reviewed Reading's reserve funds. Ms. LaPointe explained the existing reserves held in stabilization funds shown on page 4 of the handout. The Town has several stabilization funds that includes; a general fund, a smart growth incentive payment fund, employee buy-back fund, sale of real estate fund and certified "free-cash fund. A little over $1.5 million is in the general fund. The smart growth incentive payment fund that holds $700,000 and includes the two $350,000 payments the Town received from the State for adopting smart growth districts (the gateway smart growth site and the downtown district). This money was placed in the stabilization fund because 1 if construction does not begin with in a certain time period the Town must return the money to the State. The $1 million sale of real estate fund and almost $4 million in the free cash completes the reserves summary. Free cash will change as the following discussion will discuss. Revenues: Historic Regeneration: Ms. LaPointe reviewed the history of Reading's revenues (from 2005 to 2010) and how it has varied from the original projections that budgets were built upon. The amount of money in the Intergovernmental has the largest variance which includes money from the State arid Federal government. In 2009 and 2010, the Town received significantly less than what was originally budgeted. The Investment Income was relatively high during 2007 and 2008 because of the High School construction project but the budgeted interest income for operations excluded this amount, which was set aside for one-time capital expenditures during these years. Revenues have exceeded the Town's projections for the last five years but in 2009 and 2010 there was a shift and the margin of surplus was very narrow. The surplus becomes free cash at year end. Expenditures: Ms. LaPointe reviewed the variances in the 2010 expenditures shown on page 5 of the meeting handout. When money that is budgeted is not spent it is returned into free cash. For example, the trash account was lower over the last couple of years than what was budgeted because people tend to generate less trash during economic recessions. Mr. LeLacheur pointed out that when reviewing the budget from previous years to keep in mind that it is the final budget and not necessarily what was approved in the spring because sometimes money is transferred during the year. Money not spent becomes free cash at year end. Free cash is projected to be about $5 million based on these discussions. Town Land Overview: Town Manger Peter Hechenbleikner provided a list and map showing all of the vacant Town own land in Reading, excluding parks, cemeteries and conservation land. The parcel size and land values are also included on the handout. Many of the Town's vacant parcels have limitations such as wetlands. Only a couple of parcels are opportunities for the Town to sell to generate some revenue. The Oakland Road and Pearl Street parcels are potential sites. The Town Manager suggested some of the wetlands be transferred to the Conservation Commission.' Select nen Bonazoli asked how the land values were calculated and Mr. Hechenbleikner explained that they. were the assessed value from the Town's Board of Assessor's. Mr. Brown asked how the Town transfers land and Mr. Hechenbleikner responded that " land transfers are executed by a vote of the Board of Selectmen (for tax title land) unless Town Meeting approval is required. Revenues: Mr. LeLacheur reviewed the Town's FY 10 revenue in the restricted and unrestricted funds. Restricted funds are funds designated _forspecific purposes and can only be spent for those purposes. The restricted funds are shown on page 19 = 21 of the handout. Page 24 of the :handout shows recent revenue and expense savings and efforts from the Town. Savings in expenses includes items such as sick leave buyback for employees, changes in the health insurance program, the energy performance contracting, and reduced sick leave. Recent revenue savings include the incentive payments from the smart growth zoning districts, a review of all Town fees and the local meals tax. Brainstorming Session: Mr. Dockser facilitated a brainstorming session where meeting participants provided revenue ideas in small groups. A letter on revenue ideas (community access sticker fee increase) to the FINCOM from Reading resident Dave Talbot was distributed. After each group shared their ideas for potential 2 (RS) revenue sources with the whole group, everyone voted on what was considered to be opportunity areas where the Town should focus their efforts. The items identified as the top priorities included the sale of Town owned land, billboards and advertising, renting space for cell towers and wireless communications, hiring a public relations or economic development officer, and naming rights. Ms. West described the next steps and explained that the Finance Committee would summarize the results of tonight's meeting. The next financial forum scheduled for October 27th will focus on expenses. On a motion by Mr. Berman, seconded by Mr. Greenfield, FINCOM voted to adjourn at 9:05 PM by a vote of 7-0-0. Respectfully submitted, Recording Secretary 3 OF J? Finance Committee Meeting October 13, 2010 's39:N co Rp4~~ Conference Room, Town Hall The meeting convened at 7:30 PM in the Conference Room of Town Hall. FINCOM Members Present: Chair Marsie West, Mark Dockser, George Hines, Barry Berman, Kevin Leyne, Harold Torman, and David Greenfield. Members Absent: Francis Fardy and Bryan Walsh. Also Present: Town Manager Peter Heckenbleikner, Assistant Town Manager/Finance Director Bob LeLacheur, Vin ie Cameron, RMLD General Manager, RMLD Board of Commissioners Chairman Mary Ellen O'Neil, residents Bill Brown and Gina Snyder, Matt Casey from the Reading Patch and Recording Secretary Abby McCabe. There being a quorum the Chair called the meeting to order at 7:31 PM. RMLD Presentation Reading Municipal Light Department General Manager, Vinnie Cameron, gave the annual presentation to the Finance Committee. The operating and capital budgets were explained. The monthly fuel, charge is a significant part of the total revenue. The total operating revenue is approximately $86 million. The power costs is $27 million which includes all non-fuel public costs, maintenance costs are $2.5 million and the Town's payment is $1,320,000 as per the agreement with the RMLD and the four municipalities. Mr. Cameron reviewed other miscellaneous income items in the budget such as late payments and charges. Each year, approximately $2.2 million is paid to the Town and the net income for FYI 1 is $2.7 million. Mr. Berman asked if it was possible for other municipalities to join RMLD in the future. Mr. Cameron said that it was possible but is difficult. The projected revenue is shown as residential rates, commercial rates, school rates (the cost of service rates, not a discount), industrial rates, street lights, fuel revenue and energy conservation. Generally, RMLD Looks at the annual budget revenues. and then they review the expenses. Expenses: Mr. Cameron reviewed the actual revenues over the last several years until 2009 broken down by department. The capacity and transmission to different plants and companies is an expense shown in the budget. Mr.. Greenfield asked about the wind levels in Reading. Mr. Cameron explained that there was a study down recently throughout the state.and it found that Reading has very low wind levels. Mr. Berman asked if RMLD has a stabilization fiwd and Mr. Cameron answered that they do. RMLD has a rate stabilization fund of approximately $6 million and a fuel reserve charge of approximately $2.6 million. The capital budget includes construction system projects, upgrades, new customer services connections and routine construction which vary from year to year and is difficult to predict. This year's total 0 capital budget is $5.6 million but is usually closer to $4 million. This increase is due to the station upgrades and meter readings. The Town Manager explained that RMLD pays the Town in three ways; earnings distribution, 2% town sharing, and the RMLD employees are paid initially through the Town but then is reimbursed. Budget Planning The Chair distributed. a handout that she created that summarized the budget in a manner that was clear and concise. Ms. West emphasized the importance of presenting a budget to Town Meeting that is easy to. understand and not too detailed. Mr. Brown suggested providing pie charts and graphics to visually explain the budget to Town Meeting. There was a brief discussion on budget transparency and ideas to distribute the information to residents. C~Ir. LeLacheur explained that the Town is in roughly the same place as last year at this time. The outcome of Question 3 on the November ballot will have an impact. A 0% operating (non- accommodated) budget or lower is recommended by FINCOM for FY12. Mr. Berman asked if there was a more accurate estimate on the revenue generated from the local meals tax. Mr. LeLacheur estimates it to be around $200,000. Financial Forums Mr. LeLacheur pointed out that the handout distributed to FINCOM members includes an email (on page 2) from a resident with two suggestions for revenue opportunities; a betterment charge for granite curbing and charging residents for road paving. The Town Manager explained that the Town can not legally charge the road improvement tax but the curbing betterment is a possibility. In the meeting handout there is a spreadsheet that includes the bucket list from the September financial forum on revenue opportunities. The Chair suggested that a member of the FINCOM should act as a point person for each revenue suggestion. Mr. Dockser''recommended that the items.be evaluated according to the votes received during the financial forum. FINCOM members would like to have staff or one of the committee members review each suggestion and provide a brief reason or statement that would explain if it was ,or wasn't feasible. Mr. Greenfield recommended that the col urns entitled "Revenue and Implement Cost" should include a figure or range because high, medium and low doesn't mean the same thing for everyone. The Committee discussed who would be responsible for following up with each of the revenue suggestions. The Town Manager said he would assign specific departments to research the recommendations fromahe-firiancial forum. Some of the recommendations such as naming rights were briefly discussed. The next financial forum is planned for Wednesday October 27t' beginning at 7:00 PM. The Committee discussed the logistics of the meeting and the role of the facilitator during the brainstorming session. Town Meeting Warrant Mr. LeLacheur reviewed and explained the backgrounds of the Subsequent Town Meeting warrant articles that the FINCOM needs to vote on. 0 Article 3: Capital Improvements Program (CIP) The Committee discussed the proposed amendments to the GIP. On a motion by Mr. Torman, seconded by Mr. Berman, FINCOM voted 6-0-1 to approve Article 3 as written. (Mr. Leyne was absent for the vote.) Mr. Berman to prepare the Town Meeting report. Article 4: On a motion made by Mr. Dockser, seconded by Mr. Greenfield, FINCOM voted 7-0-0 to approve Article 4 as written. Mr. Greenfield to prepare the Town Meeting report. Article 5: Mr. LeLacheur explained the there was an accounting error in the engineering department when a bill was not paid because it was thought to be a duplicate. On a motion made by Mr. Hines, seconded by Mr. Greenfield, FINCOM°voted 6-0-1 to `approve payment for the unpaid bill in Article 5. Mr. Leyne was absent for the vote. Mr. Leyne to prepare the report. Article 6: This Article authorizes the Selectmen to sell, exchange or dispose of.various items such as surplus vehicles. On a motion by Mr. Ton' nan, seconded' by Mr. Dockser, FINCOM voted 7-0-0 to approve Article.6. Mr. Torman to prepare the report. Article 7: MWRA water main replacement on Haverhill Street and also includes redoing the street. On a motion,bv Mr. Torman. seconded by Mr. Berman. FINCOM voted 7-0-0 to recommend Article 7. Ms. West to prepare the report. Article 8: This article is to submit a grant application for the library construction grant. The legislative body needs to authorize the grant application submission and does not commit the Town to accepting the grant. On a motion by Mr. Hines, seconded by Mr. Torman, FINCOM voted 7-0-0 to approve Article 8. Mr. Fardy to prepare the report. Article 9:,. On a motion by Mr. Leyne, seconded by Mr. Greenfield, FINCOM voted 7-0-0 to approve Article 9-. Mr. Greenfiled to prepare the report. Article 11: Is a request to accept Benjamin Lane, Causeway Road and Kylie Drive as public ways. On a motion by Mr. Hines, seconded by Mr. Greenfield, FINCOM voted 7-0-0 to approve Benjamin Lane and Kylie Drive as public streets. On a motion by Mr. Hines, seconded by Mr. Leyne, FINCOM voted 7-0-016 not take any action on the acceptance of Causeway Road until further information is available. Mr. Dockser to prepare the report. FINCOM Position on Question 3: The Chair recommended that the Committee discuss Question 3 at November's election and take a position and write an article in the local newspaper. FINCOM members discussed the possible impact to Reading on Question 3. Committee members expressed feelings that the proposal was too radical and would have a significant impact on Reading. On a motion by Mr. Greenfield, seconded by Mr. Dockser, FINCOM voted 7-0-0 to support a news article against Question 3. Ms. West will prepare the letter on behalf of FINCOM. Miscellaneous Page 35.of the meeting handout shows a break down, of all the Town's expenses for the recent Special Election. The total cost of the special election was $15,994.16 and the unused balance was returned to free cash on June 30th Page 37-38 of the meeting handout shows the Town's extra revenue from the budgeted amount from 2005 to 2010. There is$21139 of extra revenue from 2010. Page 39 of the meeting handout are the Committee's liaisons for other Town boards, commissions and committees. Since Mr. Hines is moving out of Town and will no longer be a Reading resident, FINCOM should assign a new liaison to the municipal building committee. The Chair suggested this be voted on at the next meeting on October 27tth. Approval of August 4th and September 15th, 2010 Minutes Review and vote will take place at the next meeting on October 27tt, Mr. Hines is moving out of Town and gave closing remarks on his time as a Reading resident and FINCOM member. On a motion by Mr. Berman, seconded by Mr. Leone, FINCOM voted 7-0-0 to adjourn at 10:40 PM. Respectfully submitted, Recording Secretary 4 O