HomeMy WebLinkAboutFCMeetingMinutes_11.08.01 Finance Committee Meeting November 8,2001 Page 1
FINANCE COMMITTEE MINUTES
November 8,2001
CALL TO ORDER
Michael Garron called the meeting to order at 7:20p.m.
ATTENDANCE
Members present: Michael Garron,Chairman;Keith Mitchell;Paula Porten;Paul Stewart(8:00 p.m.);and Jack
Watkins.
Not Present: Paul Theberge,Bernice Fink,Vice Chairman
Also present: Charles Benevento,Director of Finance and Administration
APPROVAL OF MINUTES
Keith Mitchell made a MOTION,seconded by Jack Watkins,to approve the Finance Committee minutes of
November 1,2001 as amended. Vote approved 4—0.
OLD BUSINESS
FY03 Budget Timeline
The Finance Director explained the Budget Guide for FY03,which included the budget calendar. He highlighted
several dates affecting the Finance Committee:
November 30`h—Budget requests are due to the Finance Director;
January 18''—The Capital Budget is submitted to the Finance Committee;
February 9s'—the Operating Budget is submitted to the Selectmen and the Finance Committee.
ARRroval of Revolving 11 unds/Chuck Benevento
The Finance Director explained that the only fund that needs to be reauthorized annually is the one from the Health
Department,and the entire list of revolving funds are listed in the Town Manager's budget package.
BAN'S and Authorized/Unissued Protects
The Finance Director explained the list of BAN'S and Authorized/Unissued Projects. The only BAN's are the High
School($S.OM from the General Fund)and the CPA Acquisition of Hawk Ridge($1.232M from the CPA Fund).
Since 1995,$3.5M has been authorized,but not issued. Some items on the list have already been expended. hi
January or February,a large bond issue will be voted on by the Selectmen to clean up the list.
NEW BUSINESS
Tax-Exempt Properties
Michael Garron handed out a listing of all tax-exempt/tax-reduced commercial parcels in Town. He said that the
Financial Task Force is making a recommendation to request that the Town Manager assign a group to review the list
and see if they can affect"in lieu of taxes"payments.
Review of Warrant Articles for December 3 2001 Special Town Meeting
The Finance Director reviewed the recommended budget adjustments for the December Special Town Meeting:
Revenues: Revenue Increase- $400,000
Expense Increase- 522,462
Non Appropriated Expenses Expense Increase- 46,181
Monetary Articles Expense Increase- 100,000
General Fund Amendments Revenue Increase- 81,623
Expense Increase- 140,362
Net Revenue Increase $481,634
Net Expense Increase -809.005
$-327,382 Net Increase in Budget
Michael Garron requested that the Senior Center director or an appointee attend the Finance Committee Public
Hearing next Thursday to explain the$20,000 request to correct an acoustical problem.
Finance Committee Meeting November 8,2001 Page 2
The Finance Director also discussed the following:
■ There is enough Free Cash to cover the shortfall.
■ The results of a Salary Classification Study for non-union employees are due soon and could be ready in
time for the December Town Meeting. If so,there would be an addition to the recommended budget
adjustments to transfer money from the Salary Reserve that was put aside in May.
■ Amendments to Capital Improvement Plan includes the following new projects:
o $68,000-Water Security System(Enterprise Fund Retained Earnings)
o $51,081 -Reverse 911 System(General Fund)
o $25,000-Landscape Renovations at Osgood Hill(Retained Earnings)
c $139,000—Re-pointing of Main Building at Osgood Hill(Retained Earnings)
0 50,000 -Kitchen Code Improvements at Osgood Hill(Retained Earnings)
o $333,347
(Michael Garron asked that the following people attend next Thursday's Finance Committee Public Hearing:
-DPW Director Bill Hmurciak to speak on the Water Security System.
Police Chief Stanley and Assistant Town Manager Ray Santini to speak on the Reverse 911 System
-A trustee of the Stevens Estate to speak on the Osgood Hill renovations and improvements)
■ Water/Sewer Expenses
o $30,000—Dept.request error in May Town Meeting funding for water chemicals
o $37,321—Final GLSD assessment
■ Unpaid Bills. Total amount is$7,341.00 to cover miscellaneous encumbered bills.
■ CPA—There are three items in the article,$630,000(includes gravestones), $13,000(interest on BAN),
and approximately$30,000(costs to issue BAN). The Finance Committee will have to vote on the article.
Michael Garron reminded the committee that at next Thursday's meeting,the Finance Committee will hold its Public
Hearing. The Finance Committee clerk said that the Legal Notice will be in tomorrow's"Cifizen".
OTHER
Paul Stewart reported on the ATFC meeting that he and Bernice Fink attended on November 3. He said that
different towns have different methods of operation and that North Andover should continue doing what they are
doing. He also said that the State has reserves of approximately 13%of their annual budget,but towns only average
2 to 3%. The Finance Director added that the D.O.R.,in an attempt to cut state aid,tried unsuccessfully to stop
certifying Free Cash and freeze every community's Free Cash balance, Stabilization Fund balance,and any other
reserve balance.
ADJOURNMENT
Jack Watkins made a MOTION,seconded by Paula Porten,to adjourn the meeting at 9:03 p.m.
Vote approved 5—0.
Submitted: Carol Ritchie,Confidential Clerk