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HomeMy WebLinkAboutFCMeetingMinutes_10.15.09 TOWN OF NORTH ANDOVER �� '%''��� FINANCE COMMITTEE Meeting Minutes Meeting Date: 15 October 2009 Meeting Location: Town Hall, Second Floor Meeting Called to order: 6:40 PM Conference Room I. FinCom Members in Attendance Mark Rodgers-MR, Chairman X Bahrawy Ramsey-RB Peter Besen-PB,Vice Chairman X ininlle 1llfl11kinsoin l W X Ben Osgood-BO X 'a'llos I li llli lkli 'I Jean Sullivan JS X Phoim I[, ui ain.:''F1'.) X Alan Lebovidge-AL X Herb Cunha-HC, Minutes Non FinCom Members in Attendance OTHERS: Mark Rees, MRees-Town Manager Note: All FINCOM votes are subject to change upon receipt of new information. II. Previous Minutes Approved DATE: 1 Oct 2009 Approved Unanimous III. New Business AGENDA ITEM: 3.1 Update on State Budget Discussion: -Mrees provided an update on the state budget -For FYI (current year) suggestions are that the state budget will be as much as $600 million below the $18.879 billion consensus forecast for which the current state budget is based. -For FYI I the state budget shortfall could be as much as $2-3 billion dollars. Much of this is due to one time spending that was used to balance FYI 0. -The Massachusetts Taxpayer Foundation generated much of this information -A report from Timothy Murray (Lieutenant Governor) described the action plan the governor is considering to handle the budget shortfall. These include 1. Reduction of spending by $600 million 2. Reduce headcount by up to 2,000 state jobs 3. Consolidation of state agencies and services where possible 4. Energy cost savings through joint purchasing 5. Expansion of 9C budget authority - Mress reviewed letter sent by Mark Rees and the Board of Selectmen to State Senator Steven Baddour making the following requests to help the town of North Andover I. Do whatever possible to avoid additional cuts in local aid to North Andover 2. Allow municipalities to remove health insurance as a subject of collective bargaining (the same as the state grants itself 3. Remove "prevailing wage" requirements from public construction projects. 4. Reform special education to reduce the rapid increases in costs 5. Provide retirement systems additional time to recoup from investment declines 6. End current confusion regarding funding the Quinn bill by passing a law which clearly states that municipalities are not obligated to make up for the states funding drop. AGENDA ITEM: 3.2 Update on Labor Negotiations Discussion: -MRees: Discussed current status of labor negotiations: - 8 of 9 town side unions agreed last year to zero percent wage increases. - Fire department has not agreed and the impasse is heading towards arbitration - Discussions for the next round of labor contracts with the other unions are underway. AGENDA ITEM: 3.3 Proposed Meeting Schedule Change Discussion: -MR proposed that in order to allow school committee members more freedom to attend FINCOM meetings it would be a good idea to change the FINCOM yearly schedule to reduce overlap with school committee meetings. It was unanimously agreed to change the meeting schedule. A new meeting schedule will be posted on the town website. II AGENDA ITEM: 3.4 Monthly town Finance Reports Discussion: -Mrees reviewed the latest budget status report as prepared by Lyne Savage, Town Budget Director for the period ending August 31,2009. Mress reported that in balance the town continues to operate on plan as projected and does not currently see any large problems. AGENDA ITEM: 3.5 Discussion of Budget Forecaster Discussion: -MR discussed current status of budget forecasting tool and suggested that the FINCOMs first task would be to consider the growth prediction amounts the form a key part of the forward looking budget. V. Adjournment Motion: AL Unanimous Seconded:JS Time: 8:12 PM