🪙 Financial Committee 11-5-25 AI Recap

Below is a summarized version of the Finance Committee, 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.

🗓️ Finance Committee Meeting Summary

📅 Date: November 5, 2025
⏱️ Duration: ~2 hours 20 minutes
🖥️ Format: Hybrid (in-person Select Board room + Zoom)
🧑‍⚖️ Chair: Joe Carnahan

👥 Members Present: Joe Carnahan, Emily Sisson, John Sullivan, Marianne Downing, Ed Ross, Mark Zarrow, Geoffrey Coram, Endri Kume, Joseph McDonagh
🏛️ Staff Present: Sharon Angstrom (Town Accountant), Matt Kraunelis (Town Manager), Jayne Wellman (Assistant Town Manager), others as noted
🎯 Main Topics: CPA Study Committee presentation, override planning discussion, special town meeting financial articles, future policy review seminar

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🔹Public Comment

🕒 6:44–6:55

• No public comments were made.

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🔹Liaison Reports

🕒 7:02–10:09

• Select Board (Marianne):
  • Approved FY26 tax classification shift to 1.14 (up from 1.11).
  • Trash contract finalized with Republic; weekly recycling retained.
• School Committee (Geoffrey):
  • Expressed appreciation for FINCOM’s support of 3% budget increase.
• Select Board (Mark):
  • Town received a $100K grant for pickleball courts.
  • Sharon confirmed this will reduce borrowing needs.

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CPA Study Committee Presentation

🕒 10:16–1:03:00

Presented by: Sanford Matathia & Catherine Kaminer

Overview:

• Community Preservation Act (CPA):
  • State law enabling towns to raise funds via a property tax surcharge (0.5%–3%) for:
    • Open space & recreation
    • Historic preservation
    • Affordable housing
  • State match typically 20–25%; additional grants and partnerships possible.
• Committee Charge:
  • Study CPA adoption feasibility and recommend implementation details.
  • Timeline:
    • April 2026: Town Meeting vote to place CPA on ballot
    • November 2026: Ballot vote
    • July 2028: First CPA fund distribution
• Local Impact Estimates:
  • 1% surcharge would raise ~$1M annually (including state match).
  • Median Reading home would pay ~$100/year.
  • First $100K of assessed value would be exempt.
  • Additional exemptions for low-income seniors and residents under consideration.
• Eligible Projects (Examples):
  • Open Space: Grove Street lots, Town Forest improvements, invasive species control
  • Recreation: Birch Meadow Phase 2, playgrounds, courts, trails
  • Historic Preservation: Town Hall, Pleasant Street Center, schools, library
  • Affordable Housing: Address long waitlists; funds could support acquisition, development, or subsidies
• Governance:
  • CPA Committee (statutorily defined) vets projects
  • Town Meeting votes on funding allocations annually

Discussion Highlights:

• Committee leaning toward recommending a 1% surcharge.
• CPA funds could supplement or replace existing capital spending.
• Affordable housing spending would be new for Reading; other categories already receive funding.
• CPA adoption must be voted at a regular election (not special).
• Potential to coordinate CPA vote with override vote in November 2026.

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Override Planning Discussion

🕒 1:03:24–1:39:03

Facilitated by: Matt Kraunelis & Sharon Angstrom

Key Points:

• Timing:
  • Override likely needed in FY28 due to declining reserves and rising costs.
  • Debt exclusions for Killam and RECAP begin impacting tax bills in FY27.
  • Goal: Avoid compounding override and debt impact in same year.
• Options Discussed:
  • Phased Override: Raise levy limit in full but implement increases gradually over multiple years.
  • Override Study Committee: Suggested by members to coordinate planning and public education.
  • Joint Meetings: Proposed between Select Board, School Committee, and FINCOM to align strategy.
• Financial Considerations:
  • Sharon exploring debt structuring to minimize FY28 impact.
  • Pension funding schedule adjusted to reduce annual assessment (now 5.3%).
  • Capital borrowing for long-term assets (e.g., fire trucks) under review to preserve free cash.
• Public Messaging:
  • Emphasis on transparency, service impacts, and long-term sustainability.
  • Need for clear override purpose and trust-building with voters.

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🔹Special Town Meeting Financial Articles

🕒 1:39:08–1:54:30

✅ Article 2 – Senior Tax Exemption Renewal

• Renews existing home rule petition for FY27
• Vote: Recommended unanimously

✅ Article 3 – Disabilities Commission

• Establishes commission to advise on ADA compliance and pursue grants
• Vote: Recommended unanimously

✅ Article 4 – Transfer of Closed Capital Funds

• Reallocates ~$400K from completed projects to Killam School Building Project
• Vote: Recommended unanimously

Report Assignments:

• Article 2 – Marianne Downing
• Article 3 – Emily Sisson
• Article 4 – Mark Zarrow

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🔹Future Agendas & Policy Review Seminar

🕒 1:55:06–1:58:44

• Next FINCOM Meeting: February 25, 2026
• DLS Financial Policy Review Seminar: Tentatively scheduled for late January
  • Hosted in Reading Library Community Room
  • Multi-town workshop format
  • Focus on updating financial policies last revised in 2018

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🔹Approval of Minutes

🕒 1:59:11–1:59:52

• October 15, 2025 Minutes: Approved unanimously

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🔹Adjournment

🕒 2:00:18

• Motion to adjourn passed unanimously

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✅ Key Outcomes

• CPA Committee Presentation Received; FINCOM to vote on support at future meeting
• Override Planning Initiated; phased implementation and joint board coordination discussed
• Special Town Meeting Articles Recommended unanimously
• DLS Policy Review Seminar Scheduled for January 2026
• Next FINCOM Meeting: February 25, 2026

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