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HomeMy WebLinkAboutFCMeetingMinutes_06.01.06 Finance Committee ("FinCom")Meeting Minutes June 1,2006 Attendance: All members were in attendance. Town Accountant Lyne Savage and Selectman Mark Caggiano aving 6:40pm)joined the group. One lone citizen Kim Dawley sat in observance. I. Call to Order: Chairman Keith Mitchell ("CM") called the meeting to order at 6:30 pm. H. Minutes of Last Meeting—May 30,2006: Mark Nichols made a motion to approve the minutes as in the handout. Vice Chairman Batsimm seconded the motion and the motion carried unanimously. Ill. Old Business: B. Warrant Articles: CM took this item out of order to let the Town Accountant leave as early as possible. Lyne Savage("LS") provided the members with a handout on Article 18 —General Fund Appropriation Fiscal year 2007 which incorporates the amounts the FinCom voted at the prior meeting. LS then provided members with a handout on Article 12 to amend the General Fund Appropriation for Fiscal Year 2006. The members noted the Town did a great job being able to manage cost overruns within the Municipal Departments. Paul Stewart then made a motion to recommend favorable action on Article 12—Amend the General Fund Appropriation for Fiscal 2006. Vice Chairman Batsimm seconded the motion. The motion carried unanimously. The members then moved onto discuss Article 13 —Amend Stevens Estate at Osgood Hill Enterprise Fund Appropriation for Fiscal Year 2006. The motion would increase expenditures by$55,044 which resulted from additional function bookings. LS noted revenues of the same amount would offset these expenditures. Paul Stewart made a motion to recommend favorable action on Article 13— Stevens Estate at Osgood Hill Enterprise Fund Appropriation for Fiscal Year 2006 Vice Chairman Batsimm seconded the motion and the motion passed unanimously. Article 14—Prior Year Unpaid Bills was the next item discussed. Paul Stewart made a motion to recommend favorable action on Article 14—Prior Year Unpaid Bills. Vice Chairman Batsimm seconded the motion and it carried unanimously. LS then handed out a memo from Assistant ,vn Manager Ray Santilli outlining the JLMC arbitration award on the outstanding Police Lieutenants Union kontract. LS noted the impact is roughly$10,000 which the amount already reserved will cover. The actual impact of the Town's Health Insurance Proposal still remains an open item. Steve Dawe then made a motion to suspend the Finance Committee rules to allow for the members to vote on a new item. Vice Chairman Batsimm seconded the motion and the motion carried unanimously. Jack Watkins made a motion to recommend favorable action on Article 15—Fund Collective Bargaining Agreement between the Town of North Andover and the Police Lieutenants' Collective Bargaining Unit. Eva Hamori provided the second and the motion carried unanimously. LS then noted Article 16—Fund Collective Bargaining Agreement between the Town of North Andover and the Sergeants and Patrol Officers' Bargaining Unit or Units will be withdrawn. LS noted a change to Article 24—Capital Improvement Plan Appropriation Fiscal Year 2007 for the removal of the Town/School Data Network Capital Improvement of $300,000. The final handout summarized the Pine Ridge Road Town Auction. The Town rejected the highest bid of $275,000. Jack Watkins ("JW') gave the members his take on the auction as he was the high bidder. He noted his belief the Town was cautious not to sell the property too low but concluded the data the Town used to support the minimum price was approximately eight months old and did not reflect the latest changes in the marketplace. The members then moved onto query LS on the Status of the Agreed upon Procedures with the Auditors. LS stated Phase I on the task is still ongoing but she expects a final report to come at a meeting on Monday, June 5. Mike Giarratano asked whether, in her opinion, the $30,000 cost for this procedure was well spent; LS state it was. LS would not give any additional information until the final report comes out. The members thanked LS for coming and she left the meeting at 6:50pm. A. Operating Budget Presentation: CM provided the members with a brief overview of the process he took, working with JW, to come up with this presentation. JW then used his laptop to display the presentation and both members gave an overview on the slides. The FinCom will first provide an historical perspective and then move onto budget. Members questioned the large percentage increase from the FY06 budget to FY07 budget for Public .,orks. Both CM and Melinda Coppa("MC")noted the use of the Trash Fee Stabilization Fund ("TFSF")monies which eliminated three months of disposal costs in FY06. The members agreed to show a percentage change that compares costs on an apple to apple basis by removing the use of the TFSF in FY06. CM wants to emphasize the Finance Committee Meeting Minutes for June 1, 2006 Page 2 A. Operating Budget Presentation (Continued): FinCom's obligation to recommend a balanced budget, especially without any guarantees for possible revenue enhancements. CM wants to stress to the audience all departments are ring on a tight budget and any movements would devastate that service. In addition, CM expects to add the concerns the members have for the future, FY08. The members then moved onto the Minority Report portion of the presentation. A discussion ensued on the option of a trash fee and members were asked if they would have voted in favor of a budget with a fee in it. Paul Stewart("PPS")noted Attleboro uses an Enterprise Fund to manage the trash disposal revenue and expenses. Despite not having heard from Town Counsel on this issue, the members believe there is a precedent to establish an Enterprise Fund. CM also noted the Town could adopt the State Statute which gives the Board of Selectmen ("BoS') authorization to set fees or alter the Town By-laws. Selectman Mark Caggiano advised the members of the recent discussion by the full BoS to potentially call a Special Town Meeting, while the Annual Town Meeting is in session, to accomplish this task if the Citizens are moving in this direction. He further noted this is just a procedural issue. Steve Dawe("SD") questioned the various options of trash fees and noted some forms he would not agree. MC stated she would only support a trash fee which promotes recycling. Again, the members reverted to discussing the minority report budget. MC reiterated a comment, made the previous evening by PPS, stating this approach is not about trash fees but revenue enhancements and/or cost reductions. CM cited the consolidation of Human Resource services as one way to reduce expenditures. The members had a long discussion on the slide entitled "leadership". JW noted this was to address Citizen David Pinzer's comment made, at the last meeting, defining the role of the board. Members agreed to change"Leadership"to "Responsibility" or"Authority". MC noted the need to include the School Committee as they hold responsibilities for adjusting fees and reducing expenditures. JW agreed to make the changes and send out another version of the presentation later. CM noted the Budget Communication Group is meeting tomorrow at 3:00pm and he will attend to get a sense where the BoS will be on their budget. CM also noted Town Moderator Charlie Salisbury agreed to take the Articles out of order to address budget related items first. These Articles include the Elected Officials Stipend, Mosquito Control and the Health Insurance law. CM also noted the Town Moderator's desire to vote on these items as a package, followed by the - I.get vote and then entertain a reconsideration vote. Procedurally the Annual Town Meeting will start in the High bc1lool Auditorium unless it is full, at which time we all will move to the Field House. The Annual Town Meeting, if extended beyond Tuesday, June 6, will continue on Monday, June 12. Mark Nichols left the meeting at 7:36 pm. The members then discussed the proposed health insurance compromise made at the last meeting. JW noted the proposal comprised three items: adds three more members to the retirement portion of the health insurance plan, ties the Stipend amount to Health Insurance Premiums and offering to paying 100% of premium costs still does not cover the full cost to the Town_ JW further stated it appears the BoS don't understand the issue is with the retirement years and this proposed compromise does not address the future burden to the Town. The members then moved on to discuss and proposed changes to the Minority Report handout. Vice Chairman Batsimm ("VCB") spoke of a possible budget amendment from the Library Trustees to fully fund the service. The Trustees were meeting tonight and he expected to get more information on their plans. PPS then asked which members wanted to add their name to the Minority Report. SD noted his support for this approach but couldn't put his name on it if the unfunded amount was greater than the amount currently in the Stabilization Fund. SD further added this approach could open Pandora's Box and queried why the amount wasn't the level service funded amount or even an override. Some members felt this approach gives the opportunity to solve systemic problems while telling the policy board for find more revenues. PPS, CM, VCB, MC, JW, Eva Hamori and Mike Giarratano agreed to have their name added to the minority report. VCB will follow up with Mark Nichols tomorrow. SD reiterated his support in theory for the report but exceeding the stabilization fiend amount was not, in his opinion, prudent. SD departed at 8:17pm following this discussion. C. End—of-Year Wrap-up: JW announced the FinCom's End-of-Year party is on for Thursday, June S. B.Remaining Warrant Articles: CM noted changes made to the cost associated with the Water Tanks (Article 25) and the final motion on the Property tax reduction for Senior volunteers (Article 35). CM advised the members of a need to vote on these articles Monday, June 5, prior to the commencement of Annual Town Meeting. �..Adjournment: Melinda Coppa made a motion to adjourn at 8:20pm. Eva Hamori seconded the motion and it unanimously passed. Approved: Vote: X: