Loading...
HomeMy WebLinkAboutFCMeetingMinutes_04.27.06 Finance Committee ('FinCom") Meeting Minutes April 27, 2006 Attendance: Chairman Keith Mitchell was the only member not in attendance; Mike Giarratano arrived at '6:40pm. A number of citizens sat in observance. John Simons, Chairman of the Community Preservation Act Committee joined the group around 7:00pm. Special Notes: Following the meeting, the members learned this meeting was not officially posted. Therefore, any votes taken were not binding and, as such, are excluded from minutes. The FinCom will retake the votes at the next meeting. 1. Call to Order: Vice Chairman Mike Batsimm ("VCB") called the meeting to order at 6:30 pm. 11. Minutes: A) April 12,2006: Deferred until next meeting. 111. Old Business: A. SpEd Budget Request Update: Melinda Coppa("MC") explained that the salary projections for SpEd appear to be accurate and described the reason behind the difference in projections received from the Town Accountant for FY06. MC also informed the group that additional information requests were made regarding FY07 expenses, which showed a 12% increase over FY06 projections and clarification on FY06 and FY07 Circuit Breaker Reimbursements. MC noted the groups plan to review these answers at the next meeting scheduled for Wednesday, May 3. Also at this meeting, MC will request an explanation for the large variance in FY05. Paul Stewart("PS") went into more detail describing the existing system problems and potential cures the new accounting system will likely bring. MC described how the School vs. Municipal mentality still exists within the School Department and complimented the FinCom Chairman for speaking directly on this issue to those School Department members present at the meeting; she noted delivering a similar message at the last School Committee meeting. MC then asked the members for thoughts on continuing the small discussion group with the School Department while expanding to other areas of the budget. A discussion ensued and the group agreed to get the Chairman's thoughts before proceeding. MC added that the Special Education Department was asked to recalculate FY07 expenses based on the information known today. Some School Department members questioned when the cut off for changes was;both MC and PS told those in attendance the timing for changes could go right up until Town Meeting. PS then cautioned the members when discussing the budget and displayed the North Andover Citizen headline stating"FinCom Questions SpEd Request". He added questioning is one thing,but jumping to or drawing conclusions ahead of getting the answers could be misleading. Steve Dawe added that he didn't want the members to forget why this question of SpEd spending came about; which was to determine if the S 1.1 million under budget amount in FY05 was a trend or an anomaly. He further stated this question was raised in the hopes of identifying amounts to prevent teacher layoffs. MC reminded the group of the unanimous vote made to question the FY07 Budget request and had the School Department been forthcoming with information,the need for a formal request would not have occurred. Paul agreed with MC's comment and added, in the future, the FinCom should not put up with unanswered questions. VCB stated he saw nothing wrong with the article PS referred to and felt it described the facts regarding the FinCom's request. Steve then made it very clear that his question was to get a comfort level with FY06 and FY07 and pointed to the fact he never used the word"malfeasance" or any suggestion of such. Jack Watkins then strongly added his disappointment in the way the communication went with the press and believes we should operate on facts. B. School Committee Audit: MC then brought the members up to date on the School Committee vote which requested the FinCom fund the School Department Audit. MC noted that the motion did not include a friendly amendment, made by Barbara Whidden, which had the School Committee attempting to lower the costs first. MC then informed the members that Barbara Whidden was meeting with the accounting firm in an effort to not only lower the costs but get an itemized cost for each item requested. Mike Giarratano commented on the need to have a seat at the table by defining the scope and full access to the accountants, as well as any information, if expected to pay for the audit. Some members questioned whether this expense was prudent and identified it as Finance Committee Meeting Minutes for April 27, 2006 Page 2 B. School Committee Audit(continued): a"nice to have" item. In addition, other members questioned the concept of auditing a budget as well as the amount of time needed to complete the task. A brief discussion on this subject ensued. The members agreed to suspend this discussion until John Simons was done with his presentation. C. Warrant Article Review—Community Preservation Committee ("CPC"): John Simons presented the five year fund projections assuming no changes in surcharge, a lowering of the surcharge and award of a self- help grant. The group then discussed the projects accepted, as well as those rejected. The CPC primarily looked to fund projects that fall within the guidelines which the General Fund Capital Improvement Plan would typically fund, such as renovations to the Main Street Fire Station, Library restoration and Stevens Pond restoration. Converting Bradstreet for a new Police Station was not funded due to the lack of detailed information and the building's existing property status. The CPC did express interest in funding a study to determine the buildings best use but no action was taken at this time. MC requested the future projections of the Fund include estimates for"Recreation Items" since the DPW is looking for future funding for playground rehabilitation. John Simons agreed to make the changes to the financial projections. PS noted the projects approved by the CPC represent the type of projects he can and will stand up at Town Meeting to support. The FinCom then returned to the previous discussion of an audit. B. School Committee Audit(Continued): The conversation returned to the objectives of the audit and some members questioned whether this was just a political move to lend credibility to the numbers. MC also reiterated Lyne Savage's comment,made to Barbara Whidden, offering her services to audit the revolving funds with the proviso of getting the Board of Selectmen's approval first. MC described a discussion at the School Committee Meeting on whether some charges incurred by the revolving funds were directly related to the service; such as teacher salaries and office lease expenses_ At MC's suggestion, the members discussed making a formal request to the Board of Selectmen for the use of Lyne in helping audit these funds, as a measure to reduce the audit costs. MC also informed the group of a potential liability exposure resulting from the drastic cuts made in the past and proposed for the future to the School Nursing Staff. MC suggested it might be prudent to hear directly from the lead nurse, Kate Vozeolas. No action was taken during the meeting and further discussions will happen at the next. D. Other: The FinCom discussed procedural issues regarding the need to be present for the May 8, ATM. The Chairman will pose this question with the Town Moderator. IV. Adjournment: at 8:29 pm Mark Nichols made a motion, seconded by Melinda Coppa, to adjourn. The members unanimously voted to adjourn. Approved: Vote: X: