🪙 Finance Committee (FY26 Budget) 3-19-25 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 19, 2025

Start Time: 7:00PM
Format: Hybrid (in-person at the Town Hall Select Board Meeting Room and Zoom)
Purpose: Third of four weekly budget meetings. The meeting focused on the town manager’s recommended FY 26 budget, with significant attention to financial pressures, free cash usage, and capital projects.

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Attendance

1. Meeting Called to Order (1:31 – 2:17)

• Speaker: Joe Carnahan (Chair)
• Details: Joe calls the meeting to order at 7:00 PM, noting the hybrid format. Attendance is taken via roll call due to Zoom participation.
• Members Present: Roll call confirmed attendance: Ed Ross, Joe McDonagh, Emily Sisson, Marianne Downing, Geoff Coram, Endri Kume, John Sullivan, and Mark Zarrow (Zoom).
• Outcome: Meeting begins with all Finance Committee members present.

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Agenda Adjustment

2. and Public Comment Introduction (2:17 – 3:00)

• Speaker: Joe
• Details: Joe welcomes attendees to the fourth budget meeting, outlines the agenda focusing on the town meeting warrant, and proposes moving the budget vote to the end to prioritize public comment and other items. No objections from the committee.
• Outcome: Agenda adjusted to prioritize public comment and warrant discussion.

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Public Comment

3. Pickleball Courts Proposal (3:16 – 5:19)

• Speaker: Mike Coltman (President, Reading Pickleball Players Association)
• Details: Mike addresses the unexpectedly high $1.5 million quote for pickleball courts at Symonds Way, appreciates town efforts, and highlights the need for recreational space, especially for seniors. The association has raised $200,000 and aims to reduce costs collaboratively.
• Outcome: Public input received; no immediate committee action taken.

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Warrant Articles 4-15

4. Discussion (5:25 – 1:52:23)

• Article 4: Capital Improvement Budget Amendments (5:38 – 14:10)
  • Speakers: Sharon Angstrom, Karen, Joe, Emily, Marianne, Geoff, Mark
  • Details: Sharon explains amendments to the FY25-27 capital budget, including adjustments due to reduced debt (e.g., Haven Street) and new projects like a $200,000 facilities master plan study (6:06 – 11:36). Questions focus on debt offsets, project prioritization, and relation to the Town Master Plan.
  • Outcome: Clarifications provided; no vote yet.
• Article 5: FY25 Budget Amendments (19:04 – 27:01)
  • Speakers: Sharon, Jeffrey, Mark, Joe, Marianne
  • Details: Sharon presents amendments including disability retirement salary shifts ($104,000 to benefits, 21:44), fire vacation buyouts ($5-6 retirees, 23:14), and a $275,000 snow/ice deficit (24:18). Discussion on typical snow/ice costs ( historically $275-325K in normal winters).
  • Outcome: Committee understands funding shifts; no immediate vote.
• Article 6: Prior Year’s Bills (27:01 – 27:23)
  • Speaker: Joe
  • Details: No prior year bills currently; article to be tabled unless new bills arise before town meeting.
  • Outcome: No action needed.
• Article 7: OPEB Trust Fund Contribution (27:31 – 29:32)
  • Speaker: Sharon
  • Details: Standard article to fund OPEB trust with $200,000 (general fund, reduced from $500,000 due to health insurance costs) plus enterprise fund contributions (water: $85K, sewer: $25K, stormwater: $10.5K).
  • Outcome: Explained as a hedge; no vote yet.
• Article 8: Revolving Funds (29:32 – 37:54)
  • Speakers: Mark, Sharon, Jenna (via Zoom), Joe
  • Details: Approves revolving funds, including a new Elder and Human Services fund (30:04) funded by user/rental fees. Questions on fee revenue predictability (31:14) and inspection fund use (35:31, for monitoring large projects).
  • Outcome: New fund introduced; clarifications provided.
• Articles 9 & 10: Hero Act Property Tax Exemptions (38:01 – 41:23)
  • Speakers: Mark, Sharon, Joe
  • Details: Acceptance of Hero Act clauses for veterans: Article 9 (COLA adjustment to existing exemptions) and Article 10 (new one-time exemption). Funded via abatements, requiring software adjustments (40:00).
  • Outcome: Committee informed; no legal vote required yet.
• Article 11: FY26 Budget Adoption (41:23 – 41:35)
  • Speaker: Joe
  • Details: Budget vote deferred to end of meeting (voted on later at 1:57:22).
  • Outcome: Discussion postponed.
• Article 13: High/Haven Street Project Funding (41:35 – 54:02)
  • Speakers: Mark, John, Joe, Sharon, Jayne
  • Details: $2.6M Mass Works Grant plus $1.4M from other funds (sustainability, smart growth, West Street) to avoid borrowing (41:55). Questions on fund flexibility (43:42) and project scope (48:20). Motion to recommend passes 9-0 (1:52:23).
  • Outcome: Article 13 recommended to town meeting unanimously.
• Article 14: Pickleball Courts Funding (1:54:15 – 1:55:07)
  • Speakers: Mark, Marianne
  • Details: Motion to recommend $200,000 for pickleball courts passes 9-0, with Marianne expressing cautious optimism (1:54:37).
  • Outcome: Article 14 recommended unanimously.
• Article 15: Lead Pipe Replacement Program (1:55:40 – 1:56:31)
  • Speaker: Joe
  • Details: Motion to recommend funding for lead pipe replacement passes 9-0.
  • Outcome: Article 15 recommended unanimously.

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Budget Vote

5. (Line-by-Line) (1:57:22 – 2:11:55)

• Speaker: Mark, Joe and Emily (seconding), various members
• Details: Committee votes on each spending scorecard line (B99 to ZZ99) for FY26 budget, all passing 8-0 by hand vote. Key discussions:
  • B99 (Benefits, 2:00:25): $25M, includes health insurance and pensions (up 8.3%).
  • C99 (Capital): Tied to Article 4 discussions.
  • K93 (Snow/Ice, 2:08:11): Noted as weather-dependent.
  • U99 (School Dept.): Largest line, no new discussion.
• Outcome: Entire budget recommended to town meeting unanimously.

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Reports and Updates

6. (2:12:08 – 2:19:31)

• Speakers: Marianne, Matt, John
• Details:
  • Marianne: Select Board reappointed Sharon as Town Accountant, plans appraisal for Pleasant Street Center (2:12:39).
  • Matt: MBTA zoning compliance achieved (2:17:09).
  • John: Eastern Gateway survey now available (2:19:16).
• Outcome: Updates shared; no votes.

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Finance Committee Report

7. to Town Meeting (2:19:39 – 2:36:25)

• Speakers: Joe, Marianne, Sharon, Geoff
• Details: Joe presents draft report, praised by Marianne (2:19:51). Suggestions include refining “well-positioned” phrasing (2:31:05) and punctuation fixes (2:36:12). Sharon raises free cash increase from $5.8M to $6M (2:22:33), committee opts for free cash over investment income adjustment (2:29:10).
• Outcome: Report to be revised before printing deadline (March 21).

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Meeting Closure

8. (2:41:47 – 2:43:24)

• Speaker: Joe
• Details: Minutes from March 12 approved 7-0-1 (Mark abstains, 2:43:05). Motion to adjourn passes 8-0 (2:43:24).
• Outcome: Meeting ends at approximately 9:43 PM.

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Key Outcomes

1. Warrant Articles Recommended: Articles 13 (High/Haven Street), 14 (Pickleball), and 15 (Lead Pipe) unanimously recommended to town meeting.
2. FY26 Budget Approved: All budget lines (B99-ZZ99) recommended unanimously.
3. Free Cash Decision: Increased to $6M from $5.8M to cover health insurance costs, avoiding investment income risks.
4. Public Input: Pickleball funding concerns noted, with commitment to cost reduction.
5. Report Adjustments: Finance Committee report to be refined for clarity and accuracy.