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HomeMy WebLinkAboutFCMeetingMinutes_01.26.16 TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date January 26, 2016 Meeting Location: Police Station Community Meeting Room, CTO 6:45 Bill Callahan, BC Chairman X Susan Almono, SA Donald Elliot, DE Vice Chair X Timothy Tschirhart, TT X Karin Blake, KB X Liz Gerron, LG X Thomas Ringler, TR X Angela Ciofolo, AC X Chris Nobile, CN X Jennifer Goldman, JG X Ray Santilli (Santilli). Assistant Town Manager Lyne Savage (Savage), Town Accountant Note: All FINCOM votes are subject to change upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Agenda A Approval of minutes January 5, 2016 th TT: Made a motion to amend the following paragraph on page 3 of the January 5 Minutes that read; Savage: stated that there are no debt issues on this recommendation, because we have retained earnings that will offset this cost. We are following policy and we are not adding more projects. We will be able to use the retained issues over the next 5 years. Also it helps that the rates have not changed in 5 years and we have kept everything steady. There will be no borrowing; we are using the retained earnings. To amend to; Savage: stated that there are no debt issues on this recommendation, because we have retained earnings that will offset this cost. We are following policy and we are not adding more projects. We will be able to use the retained earnings over the next 5 years. Also it helps that the rates have not changed in 5 years and we have kept everything steady. There will be no borrowing; we are using the retained earnings. LG:Second All in favor ------------------------------------------------------------------------------------------------------------- 1 January 26, 2016 th KB: Made a motion to amend the following paragraph on page 4 of the January 5 Minutes that read; Maylor: stated that he is going to give a brief overview. Maylor stated his focus on the Capital Plan is to make it consistent with the previous years. Sometimes changes happen but you would have to come with the justification if a change is made. We try to honor and keep within the 5%. Our target has been to continue to be at or below the 5% unless circumstances arise, such as increased interest rates. To amend to; Maylor: stated that he is going to give a brief overview. Maylor stated his focus on the Capital Plan is to make it consistent with the previous years. Sometimes changes happen but you would have to come with the justification if a change is made. We try to keep within the 5% Net Debt Ratio. Our target has been to continue to be at or below the 5% unless circumstances arise, such as increased interest rates. DE: Second All in favor --------------------------------------------------------------------------------------------------------------------- th KB: Made a motion to amend the following paragraph on page 4 of the January 5 Minutes that read Maylor: stated that we are seeing construction escalation . To amend to; Maylor: stated that we are seeing construction cost escalations . JG: Second All in favor ------------------------------------------------------------------------------------------------------------------------------- th KB: Made a motion to amend the following paragraph on page 5 of the January 5 Minutes that read; TR: A question on the Capital Budget, what is next, can we afford what is next. Especially in keeping within the 5% of the Facility Master Plan, will it limit us going forward? Maylor: responded that in the plan it calls for bringing out a consultant to evaluate for a Facility Master Plan II. To amend to; TR: A question on the Capital Budget, what is next, can we afford what is next. Especially in keeping within the 5% Net Debt Ratio seen in the Facility Master Plan, will it limit us going forward? Maylor: responded that in the plan it calls for bringing out a consultant to evaluate for a Facility Master Plan II. JG: second All in favor TT: Made a motion to approve Minutes as amended All in favor 2 January 26, 2016 ----------------------------------------------------------------------------------------------------------------- January 12, 2016 th JG: Made a motion to amend the following paragraph on page 2 of the January 12 Minutes that read; KB and BC: Spoke at separate times of spreadsheets and having things listed on spreadsheets that need to done in rank order. To amend to; KB and BC: Spoke at separate times of spreadsheets and requested a list of future facility projects in rank order . KB: Second the motion All in favor th DE: Made a motion to amend the following paragraph on page 3 of the January 12 Minutes that read; Santilli: we will work on that list for the second and third year, but I want you all to know it will be a very general list. To amend to; Santilli: we will work on the future facility rank order list for the second and third year, but I want you all to know it will be a very general list. KB: Second All in favor --------------------------------------------------------------------------------------------------------------------- th TT: Made a motion to amend the following paragraph on page 3 of the January 12 Minutes that read; McClure: the thing that he is most proud of is the strengthened system he has had with the school and the increase of collaborative projects. The Focus on Networks will remain and as much as we can put into the Cloud, will remain. To amend to; McClure: the thing that he is most proud of is the strengthened IT Network he has had with the school and the increase of collaborative projects. The Focus on Networks will remain and as much as we can put into the Cloud, will remain . JG: Second All in favor th JG: Made a motion to amend the following paragraph on page 3 of the January 12 Minutes that read; McClure: for the municipalities he has worked with accounts payable, general ledgers, budgeting payments, to make it a success. 3 January 26, 2016 To amend to; McClure: for the MUNIS Accounting System worked with accounts payable, general ledgers, budgeting payments, to make it a success. KB: Second the motion All in favor TT: Made a motion to approve Minutes as amended JG: second All in favor Agenda B Continue Discussion on CIP and vote BC: Savage has the yearly CIP report that the committee requested (for FY15-FY16). She will pass them out and explain it. Savage: explained her handout/report stating that she printed from the old system to show what we ended up with in FY 2015.Savage also pointed out that the Blue Bar shown at the top of each page is from the new MUNIS System (FY 2016). Savage stated she wanted to show how the balance flows from 2015 into 2016. Savage: stated that this handout is self explanatory and she spoke how she highlighted each department and balances. Savage: Later she spoke of available money and borrowing. Typically they just borrow once a year, they usually have enough money on hand and that they borrow in the May-June time frame. She explained that there is lot of cost and paper work associated with it as well, so borrowing once a year is better. DE: complimented Savage, stating that this handout is very good, it has helped clarify a foggy area for him, thank you Lyne. BC: Lyne that was great I know it was a lot of work to pull together. BC: The next part of the CIP is to vote TT: I make a motion that we move to accept the FY17 Capital Improvement Plan, for the General Fund, totaling $7,732,757 as detailed on page 1 of the Capital Improvement Plan General Fund Enterprise Fund 2017-2021 report. LG: Second the motion Any discussion All in Favor to approve TT: I motion that we accept the Recommended Sewer Capital Budget Projects for FY17, totaling $150,000 as detailed on page 109 of the Capital Improvement Plan General Fund Enterprise Fund 2017- 2021 report. LG: Second the motion 4 January 26, 2016 Any discussion All in favor TT: I move that we accept the Recommended Water Capital Budget Projects for FY17 totaling $475,000 as detailed on page 127 of the Capital Improvement Plan General Fund Enterprise Fund 2017-2021 report. KB: Second the motion Any discussion All in favor TT: I move that we accept the Recommended Stevens Estate Capital Budget Projects for FY17, totaling $125,000 as detailed on page 155 of the Capital Improvement Plan General Fund Enterprise Fund 2017- 2021 report. DE: Second the motion Any discussion BC: We should note for a lot of these Capital Funds that they are being funded out of retained earnings. All in Favor. Agenda C Continue Discussion on Collective Bargaining Agreements BC: Gave a brief history of what took place at the last meeting regarding the bargaining agreement. BC: Also wanted to sum up what the Committee was thinking (going through each item from A-E) A-Collective bargaining and contracts are very important. B-The town does this fairly well C-Visibility might be important D-We (the committee) do not fully understand the idea behind what happened with this article in 2010 at the Town Meeting, since none of us here were part of this Committee back then. And E-To try some other way to come up with transparency maybe by commenting a message in our letter (regarding the bargaining agreement). Santilli: Went through the process of how contracts get ratified. Once the contract gets ratified it is public record. It is a confidential document until it gets ratified. Santilli: stated that the only time that Town Meeting votes on a contract is when it is under arbitration. Agenda D Discuss Finance Committee Web Site BC: asked if anyone here has been on the Finance Committee website? 5 January 26, 2016 and made suggestions and felt that the Finance Committee website should be reformatted to look more like what the Public School Website looks like. JG: pulled up the Public School website to show the committee an example of what she was proposing, because it is just a 1 page format showing, meetings, agendas and minutes and more at a glance. JG: Also suggested that e-mail addresses should be posted, because she felt it was important that the Committee has transparency (since they have discussed this at past meetings). BC: Commented that he has received only a few e-mail in the past 2 years and if anything were to come into his e-mail box for all to view, he would forward it to the committee. JG: Suggest that every time we have a meeting and the agenda gets posted that this information goes out on social media with a link to the agenda. KB: Made a motion to approve that the meeting dates, times, and locations are posted by the town office onto the Social Medial and the town reformat the Fincom website pages to become only 1 page listing that would include meeting dates ,agendas, minutes and handouts. DE: Second All in favor Agenda E Questions for Town Manager BC: Stated that since Andrew Maylor is not here tonight it was suggested that e-mail could be sent to Maylor to be answered at a different time. KB: Wanted to pass out various handouts that she received. KB also directions on how to use this website (http://www.mass.gov/dor/local-officials/) to compare town-by- town revenue sources and also showed the usefulness to the committee. BC: Wanted it to be noted that our 1 big unresolved schedule issue is when we will hear from the CPA request. JG: Request that all future agendas list the expected attendees. WC: Provided meeting dates and list expected attendees to Angela Agenda F Adjourn 8:45 KB: Made a motion to adjourn JG: Second the motion All in favor 6 January 26, 2016 Document Table SUBJECT FROM TO 1. Capital Improvement Plan General Fund (2017-2021) Town Manager Fincom th 2 Finance Committee minutes January 5 and January 12 Angela Fincom 3. FY15-FY16 YTD Budgets Savage Fincom 4. Department of Revenue (official website) KB Fincom 5. An Obligation to Lead KB Fincom (MA Municipal Association) 6. Section 3 Local Aid Distribution KB Fincom 7. New England Police Stresses Treatment Over War on Drugs KB Fincom (the New York Times Monday, January 25, 2016) 7 January 26, 2016