🪙 Finance Committee 3-5-25 AI Recap

Below is a summarized version of the Finance Committee meeting, organized by timestamps and speakers, focusing on key points raised during the discussion in Reading, Massachusetts. This summary condenses the discussion into major themes, speaker contributions, and decisions, avoiding excessive detail while retaining the essence of the conversation. Timestamps correspond to the video linked at the bottom.

Meeting Overview

---

Meeting Summary: Finance Committee – March 5, 2025

Start Time: 7:00PM
Format: Hybrid (in-person at Town Hall and Zoom)
Purpose: Second of four weekly budget meetings, focusing on big projects (Killam School and RECAL building), routine finance business, and updates.

Opening and Roll Call (1:42 – 2:23)

• Speaker: Joe Carnahan (Chair)
• Details: Meeting called to order at 7:00 PM. Roll call confirmed attendance: Mark Zarrow, Ed Ross, Joe McDonough, Emily Sisson, Marianne Downing, Geoff Coram, Endri Kume, and John Sullivan. Additional committees (Killam School Building Committee, Permanent RECAL Building Committee, Select Board) were also called to order with respective members present (e.g., Nancy Tumi, John C, Chris Haley).
• Outcome: All expected members present, meeting proceeds with hybrid format acknowledged.

---

Agenda Overview

(2:23 – 3:06)

• Speaker: Joe
• Details: Overview of the night’s agenda: big projects (Killam School and RECAL), reserve transfer request, snow/ice deficit spending. Next week’s meeting will cover the town budget and financial forecast, with town meeting warrant articles on March 19.
• Outcome: Agenda set, focus on financial implications of projects and routine business.

---

Liaison Reports

(4:47 – 7:59)

• Speaker: Joe, with contributions from John
• Details:
  • Joe reported on the previous night’s Select Board meeting, highlighting a $1.8-$1.9M pickleball project cost, with potential cost reductions and synergy with the Senior Center project (5:04 – 5:49).
  • School Committee update: State-approved school bus cameras proposed, costs TBD (6:30 – 7:03).
  • John mentioned an upcoming Eastern Gateway survey (7:12 – 7:24).
• Outcome: Updates provided, no immediate action required.

---

Public Comment

(8:05 – 10:56)

• Speaker: Joe, Laura Stella (public commenter), Jackie (assisting)
• Details:
  • Laura raised a question about debt reduction savings being double-counted for Kellum and RECAL projects (9:01 – 9:46). Joe clarified that savings occur once, not duplicated, despite being shown in both presentations for context (9:52 – 10:25).
• Outcome: Clarification provided; savings apply once regardless of project approvals.

---

Killam School Project

Presentation (10:56 – 56:21)

• Speakers: Jackie (presenter), Carla Nazzaro, Ed Ross, Joe Carnahan, Thomas Milaschewski – Superintendent, Mike Carroll (Project Director)
• Details:
  • Overview (11:04 – 12:41): Carla introduced the Killam project, in MSBA Module 4 (schematic design), submitted February 10, 2025. MSBA review expected by April 30, with funding (Module 5) within 180 days.
  • Funding (12:50 – 13:34): $2.2M appropriated in 2022 covers feasibility and design; a May 13, 2025, debt exclusion vote will fund the rest.
  • Design (13:42 – 19:31): Three-story building with preschool (RISE), K-5 classrooms, gym, and cafeteria. Features improved parking and traffic flow.
  • Budget Update (19:41 – 23:27): Ed asked about the $2.2M expenditure; Carla noted $650K under budget, allowing design advancement to save time and escalation costs ($333K/month).
  • Features (24:03 – 26:58): All-electric, solar-powered, with a potential emergency shelter (not official). HVAC option 3A (half geothermal) chosen for cost incentives.
  • Timeline & Savings (28:09 – 33:41): Coordinated with RECAL for May 13 vote, saving $450K in escalation costs. Modular classrooms to be relocated to high school, costs covered by project contingencies.
  • Risks (34:29 – 38:38): If town meeting rejects but voters approve, a special meeting may be needed. MSBA funding at risk if no consensus.
  • Enrollment Debate (39:12 – 49:03): Superintendent countered claims of declining enrollment with projections showing growth (1,776 to 1,932 by 2032) and rising special needs, justifying size.
  • Costs to Upgrade Existing (49:10 – 51:04): $62M to bring current Kellum up to code vs. $87M for a new school.
  • Financials (51:10 – 56:21): MSBA grant of $42.6M (51% of eligible costs). Net tax increase for average home ($890K) estimated at $347/year after debt roll-off.
• Outcome: Detailed presentation, concerns addressed (enrollment, costs), vote preparation underway.

---

RECAL Building Project

Presentation (Truncated, ends at 2:45:17)

• Speakers: Joel Bargmann , Mark Dockser, Chris Kowaleski (Elder Services), others
• Details (Partial):
  • Design & Parking (1:54:53 – 1:59:07): 90-93 parking spaces planned, with shared parking synergy with Burbank Ice Arena. Day-to-day use estimated at 150 people.
  • Construction Overlap (2:01:14 – 2:04:07): Significant overlap with Killam construction, half a mile apart. Traffic and parking management plans in development.
  • Purpose (2:04:14 – 2:06:59): Designed for 60+ community, with pickleball, gym, and track. Aims to maximize use for seniors and broader community.
  • Access Control (2:07:04 – 2:12:16): Reading residents prioritized, non-residents charged fees. Main entrance to monitor usage.
  • Kitchen (2:15:37 – 2:18:59): Commercial kitchen planned for community meals and classes, supporting larger events (up to 200 people).
• Outcome: Presentation ongoing at truncation; focus on multi-use facility and operational planning.

---

Reserve Fund Transfer Request

(2:20:52 – 2:37:11)

• Speaker: Unnamed (presumed Joe or staff), Laura (Town Clerk)
• Details: $80K requested: $60K for election costs (overruns from November 2024, special election in May 2025), $20K for DPW traffic control repairs.
  • Elections (2:22:04 – 2:34:17): Overruns due to vote-by-mail surge (6,856 ballots) and staffing. High-speed scanner purchased for $4K (from $20K value). Storage issues addressed with a $10K shipping container plan.
  • Traffic Control (2:35:09 – 2:36:02): Increased repair costs, no major infrastructure issues.
• Outcome: Motion approved unanimously (9-0) to fund $80K transfer.

---

Snow and Ice Deficit

Spending (2:37:29 – 2:40:34)

• Speaker: Joe, unnamed staff
• Details: $275K deficit spending proposed due to harsher winter. Legal deficit approval sought for town meeting funding from free cash.
• Outcome: Motion approved unanimously (9-0) to allow deficit spending.

---

Future Agenda & Minutes

Discussion & Approval (2:40:41 – 2:44:48)

• Speaker: Joe, Marianne
• Details: Next week’s agenda includes town budget and free cash updates. Minutes from February 26 amended (added Dana Gino, corrected Marianne’s name) and approved unanimously (9-0).
• Outcome: Meeting concluded, next steps planned.

---

Key Outcomes

1. Killam School: Advanced planning, $450K potential savings, MSBA funding hinges on May 13 vote.
2. RECAL: Multi-use facility design progressing, operational details TBD.
3. Financial Approvals: $80K reserve transfer and $275K snow/ice deficit spending approved.