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Home My WebLink AboutFCMeetingMinutes_04.06.06 Finance Committee ( FinCom") Meeting Minutes April 6, 2006 Attendance: Mark Nichols was the only Finance Committee member not in attendance. Also present was —Citizen Peter Reed. Town Manager Mark Rees arrived at 7:OOpm. I. Call to Order: Chairman Mitchell ("CM") called the meeting to order at 6:30 pm. II. Minutes: A)April 4,2006: Vice Chairman Batsimm ("VCB") made a motion, seconded by Steve Dawe, to approve the minutes as amended by Eva Hamori. Jack Watkins took a moment to clarify it may not have been accurate to state for the past eight years the Fire Department has gone over budget,but continued to add that this is an ongoing problem. Paul Stewart noted the minutes in the handout did not include his changes. The motion was withdrawn until next week where members can review the minutes that incorporate his changes. 111. Old Business: A. State Lobbying Efforts Update: CM updated the group on efforts to get additional aid from the State. The Town is looking to join with other Communities in supporting the Acton Bill which would give minimum financial aide. Representative Torrisi is in support of this bill and referred to this measure when he addressed the Citizen's following the FinCom's Public Hearing. This Act changes the definition of State School Aide giving a minimum of$1,500 per student in year one with a$1,700 and $2,000 in the following years. Paul Stewart made a motion authorizing the Chairman, on behalf of the Fin Com, to lobby the State and other municipalities in support of this Bill Jack Watkins seconded the motion andgave the new members some hack ground on the need for this Melinda Coppa in support of Jack's comments compared North Andover's per pupil reimbursement of roughly$900 per student to Methuen's per pupil reimbursement of$3,000. Steve Dawe noted Representative Barbara L'Italien didn't have much hope this would pass. CM noted that this was a —start to improve funding. The motion carried unanimously. B. SpEd Budget Request Update: CM recapped the meeting held early in the morning with Paul Szymanski, School Committee Member Barbara Whidden, Jackie McVeigh(newly retired SpEd Director), SpEd Director Cheryl Raimondo, Town Accountant Lyne Savage, Camille McLaughlin, Assistant Superintendent Dr. Bergeron and Melinda Coppa. He informed the members the School Department presented a preliminary response which didn't answer questions previously raised. Questions continue in the area of salary projections for the remaining year and the person who estimated the salaries was on vacation. The sense is that the number is still high but the plan is to meet with the School Department again next week. In addition, CM noted we asked the School Department to look at estimating Circuit Breaker for FY07. CM noted Barbara Whidden's willingness to push for better financial reporting and have a SpEd schedule that shows all costs less sources of funding. Jack Watkins questioned whether an explanation for the FY05 actual was given. A brief discussion ensued on this topic as Steve Dawe provided details which Dr. Harutunian gave him. The question for a majority of members remains on when this information was known. CM reiterated that the goal is not to take money away from the School but rather ways to reduce the budget request. Paul Stewart stated the need to see all the monies and referred back to the Health Department fiends. Paul then requested we move on to more pressing issues, the warrant book. Mike Giarratano interjected his findings on interest income. He met with Roberta McGowan, Assistant Treasurer, and reviewed bank balances and earnings year-to-date. Mike pointed out that the information provided in the FY07 budget shows forecasted FY06 interest income below what had already been earned through December. When looking at actual interest income over the past year, Mike determined that the income had trended significantly upward, and as a result the FY07 interest income budget should be re-estimated. Due to the timing of the Warrant printing,members requested Mike come up with a recommendation before the end of the meeting. C. Outstanding Warrant Book Issues: The FinCom went through each Article in the Warrant reviewing the explanations and voting where applicable. During the discussions,members were informed of the possible Finance Committee Meeting Minutes of April 6, 2006 Page 2 withdrawal of the Collective Bargaining Article 30. CM will discuss Town Counsel to determine if it goes against the State Bargaining laws. The following votes took place: Article 5—Steve Dawe, seconded by Jack Watkins, motioned to recommend favorable action. Passed unanimously, 8-0-0. Article 6—Steve Dawe, seconded by Jack Watkins, motioned to recommend favorable action. Passed unanimously; 8-0-0. Article 7—Steve Dawe, seconded by Jack Watkins, motioned to recommend favorable action. Passed unanimously; 8-0-0. Article 8—Steve Dawe, seconded by Eva Hamori, motioned to recommend favorable action. Passed unanimously, 8-0-0. Article 31—Paul Stewart, seconded by Mike Batsimm, motioned to recommend unfavorable action. Passed unanimously; 8-0-0. Article 33—Paul Stewart, seconded by Jack Watkins, motioned to recommend favorable action. Passed; 5-0-3, with Jack Watkins,Mike Batsimm and Steve Dawe abstaining. Article 35—Steve Dawe, seconded by Melinda Coppa, motioned to recommend favorable action. Passed unanimously; 8-0-0. Article 46—Melinda Coppa, seconded by Paul Stewart, motioned to recommend favorable action. Passed unanimously; 8-0-0. Article 47—Mike Batsimm, seconded by Paul Stewart, motioned to recommend favorable action. Passed unanimously, 8-0-0. Article 48—Mike Batsimm, seconded by Paul Stewart, motioned to recommend favorable action. Passed unanimously; 8-0-0. Article 49—Mike Batsimm, seconded by Paul Stewart, motioned to recommend favorable action. Passed; 7-0-1, with Keith Mitchell abstaining. Article 50—Paul Stewart, seconded by Eva Hamori, motioned to recommend favorable action. Passed; 7-0-1, with Keith Mitchell abstaining. Town Manager Mark Rees inquired on the FinCom's position on the Hopkinton Bill. After a brief discussion the members agreed to keep as an open issue. Jack Watkins pressed the members to have an opinion before Town Meeting. The members agreed to discuss this further. The members then returned to the discussion regarding interest income. Mike Giarratano walked Mark Rees through the process he took in reviewing the estimate with an increased balance in funds and interest rates. He proposed increasing to $800,000. When asked for the source of his estimate, Mark Rees told the members he used the Revenue/Fixed Cost Review Committee's projections. Mark reserved comment on the estimate until he has a chance to review it with his staff. The FinCom members then agreed to keep the Budget amount in for the Warrant, highlighting it as a variable. After this discussion, the members moved onto the Finance Committee Report to the voters. CM will update the snow and ice deficit numbers. The members then discussed giving Paul Stewart permission to make adjustments, on their behalf, to the Warrant prior to Monday when the printer receives the file. Melinda Coppa made a formal motion, seconded by Mike Batsimm,giving Paul Stewart authorization. The motion passed unanimously. IV. Adjournment: The FinCom will meet Wednesday, April 12, at 6:30PM. CM noted the topics will include discussions on the General Budget and Chief Dolan will talk about the deficit in overtime. Melinda Coppa made a motion to adjourn at 8:27pm. Mike Batsimm gave a second to the motion and all members thanked Paul for his work on the warrant. The voted carried unanimously. Approved: Vote: X: