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Home My WebLink AboutFCMeetingMinutes_11.14.02 APPROVED FINANCE COMMITTEE MINUTES November 14,2002 Meeting ATTENDANCE: The following members were present: Jack Watkins,Chairman,Paul Stewart, Steve Dawe,Keith Mitchell,Mark Nichols,Melinda Coppa,Paula Porten,Mike Batsimm,and Bernice Fink(arrived 7:05 PM). Also present were Mark Rees, Town Manager, Chuck Benevento,Finance Director, and three North Andover residents. CALL TO ORDER: Jack called the meeting to order at 7:00 PM. APPROVAL OF THE MINUTES: A MOTION was made to approve the Minutes of the October 24,2002 meeting. There were no comments on the Minutes. Melinda made a MOTION to approve the Minutes as written. Mark Nichols seconded the MOTION and it was passed by a vote of 7 - 1 with Paula Porten abstaining. Vice Chairman Bernice Fink then arrived at 7:05 PM. FINANCE DIRECTOR'S COMMENTS Jack briefly noted that this new agenda item is an experiment. Its purpose is to open a line of communication between the FinCom and the Finance Director. It is not a reporting medium, but rather an informational session. Chuck did have information to share with the members. He distributed the following documents: ➢ Town of North Andover Annual Financial Reports FY2002 ➢ Town of North Andover Massachusetts Budget Guide Fiscal Year 2004 Instructions for Objective Tracking System ➢ Overlay Comp by Year as of 6/30/2001 After some discussion, it was agreed that the FinCom go over these materials and address any issues at the next meeting. OLD BUSINESS Jack suggested, and the FinCom agreed,to change the order of agenda items. The dialogue began on Agenda Item 4b),December Town Meeting Draft Warrant. Mark Rees distributed a spreadsheet on funding sources for articles from free cash and overlay surplus. He broke out each item by number starting with Article 1. Jack noted it is the Finance Committee's responsibility to vote on Articles concerning money. 1) Unemployment Expenses: Because the economy affects insurance premiums, projecting these types of increases is almost impossible.Unemployment payouts are dollar-for-dollar paid by the Town and mandated by the state. For example, when a grant expires,the employee is eligible for the Town's unemployment. In addition,when teachers are let go before they are tenured,they can collect unemployment. 2) Streetlight Expense: Streetlight bills were under funded by$40,000. Mark Rees said that the Town had looked into turning streetlights off but it was not feasible. Apparently,the Town is obligated to pay Massachusetts Electric Company a tariff for the unadvertised costs. Mark Rees noted that the Town could possibly purchase the streetlights currently owned by the electric-company but at this stage, it is not cost effective. 3) Veterans' Benefits: The Veterans' budget is short$20,000 this year due to a growing number of veterans seeking benefits. Mark Rees noted that 75% of this expenditure is reimbursable by the State. 4) Communication Officers Contract: A three-year contract was recently settled with the Communication Officers(dispatchers). This Article retroactively funds the raises that they did not receive in FY2002. 5) This request is for a transfer from the Overlay Surplus Account to the Fixed Expenses,Liability Insurance Account. These accounts are short$93,000 this fiscal year.Liability insurance costs have increased dramatically due to 9/11 and for those who work with children because of the church sex abuse scandal. 6) Finance Committee Reserve: This Article increases the Finance Committee Reserve to address potential snow and ice and special education deficits. The group noted that the first six Articles require a favorable recommendation from the Finance Committee in order to be put to a Town Meeting vote;therefore,they tabled action until the next meeting. 7) Salary Reserve Distribution: This Article transfers-$470,450 from the Salary Reserve to Personnel Line Items leaving the remainder for police and non-union personnel. 8) Assessor Reevaluation Expense: This Article transfers funds from the Overlay Surplus to the Assessors for use in preparing for next year's reevaluation of property. 9) This Article authorizes borrowing$90,000(under the provisions of Chapter 44 of the Massachusetts General Laws or any other authority)for the replacement of the Johnson Circle Sewer Pumping Station. The FinCom asked Mark Rees to clarify which funds the cost of these items would come from.(This next sentence is inserted at Mel.inda's request). The funds are to be repaid out of the Sewer Enterprise Fund. 10) This Article approves payment for prior year's bills totaling$4662.54. 11) This Article replaces the Town's Personnel By-Law by a Town Personnel Policy. 12) This Zoning By-law change would allow the Board of Appeals an extra 25 days to make decisions on variances or appeals. 13) This Zoning By-law change deletes the requirement that political signs cannot be displayed sooner than 30 days prior to an election,and must be removed within three days after the election. 14) Land Acquisition on English Circle: This authorization requires no Town funds. 15) Land Acquisition to provide for possible future expansion of the Water Treatment Plant. Mark Rees explained the complications associated with this request. The FinCom asked Mark Rees where the funds would come from. The $30,000 would be raised and appropriated from the Water Enterprise Fund.(Melinda requested this sentence be inserted). 16) This Article would prohibit the Town from issuing a liquor license to establishments that conduct adult entertainment. 17) This Article would give Town Departments the authority to set license fees/service charges. The FinCom then discussed options for Free Cash. The group noted that there are two distinct opinions concerning the use of these funds; either use them for operating expenses or for non- recurring items. The members decided to vote on this issue at the next meeting. School Building Repairs was next on the agenda. The members discussed the possibility of getting additional School Building assistance from the state. The group recommended that the School Superintendent apply(for the Town of North Andover)for placement on the state's reimbursement list for school repairs. Jack said he is meeting with School Superintendent Mr. Allen next week. At that time,he will request that Paul Szymanski attend a FinCom meeting to 2 clarify any issues concerning renovations. The FinCom agreed that a tour of the elementary schools would assist them with any decisions they make on this issue. Keith then distributed the final draft of the Finance Committee Policies&Rules of Procedures. After a brief description of current changes, Steve MOTIONED to accept the Finance Committee Policies &Rules of Procedures. It was seconded by Melinda and passed unanimously. NEW BUSINESS Jack then distributed a memorandum from William Allen, Superintendent of Schools. In this memo,Mr.Allen seeks assistance from the FinCom to cover the expense of security systems for North Andover elementary schools. OTHER BUSINESS Bernice then distributed a draft format for budget requests. The draft outlined the information that the FinCom may request from each department. After a brief discussion on the subject, it was noted that the committee should reserve more time for this subject. Jack thanked`B"for her hard work organizing the information. The group decided to research this issue further. After a brief conversation about future FinCom meetings,the group scheduled the next meeting for Thursday,November 21 at 7:00 pm. ADJOURNMENT There being no further business,Keith made a MOTION to adjourn the meeting. It was seconded by Paul and passed unanimously to adjourn the meeting at 9:30 PM. 3