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HomeMy WebLinkAboutFCMeetingMinutes_01.06.05 Finance Committee Meeting Minutes January 6,2005 ,%-ttendants: Chairman Jack Watkins,Vice Chairman Keith Mitchell,Melinda Coppa, Mark Nichols,Paul Stewart, Steve Dawe. Also ,ent was School Superintendent Dr.Harry Harutunian("Dr.H"). Melinda Coppa filled in as Secretary in Mike Batsimm's absence. Call to Order: Chairman Watkins called the meeting to order at 6:36 PM. Approval of Minutes: Vice Chairman Mitchell made a motion to approve the December 9,2004 minutes adjusted with the correct spelling of Mr.Boles. This motion followed with a second from Mark Nichols. All members present voted unanimously in favor of the motion. FY06 School Department Budget(Dr.T): Dr.H spent approximately one hour discussing the FY06 budget. As a member of the Revenue/Fixed Cost Committee,he handed out a document that he received from North Andover's State Representatives with respect to the State Aid outlook. Then Dr. H handed out the School Department's FY06 Recommended Budget. The School Committee received copies of this budget and will begin discussing it in detail at the meetings outlined in a subsequent handout. Missing from this document is the list of goals that the School Committee set for the coming year. Dr.H will provide these goals at a later date. Dr. H walked the group through the budget and provided supplemental handouts which cover the"proposed increases"in staffing and special education. In addition to the format provided last year,the FY06 Recommended Budget now shows the costs allocated by program between personnel and non-personnel costs. This was in direct results to comments made by the Finance Committee the previous year. The FY06 Recommended Budget is set at $34,498,521 which represents a 13.6%increase of the Prior year. Dr.H stated North Andover's school system has more students now than any other year. Projections for enrollment will increase to 4,600 in FY06. With the elementary school's growth stabilizing in the next 10 years,the bulk of the enrollment increase in future years will fall to the Middle and High Schools. The state issued its inflationary rate at 2.66°/x. In FY05 the School department received a 0.62%,$186,000,increase over the prior year. The School Department can not survive by getting rates of increases this low when the costs are increasing at a much larger rate. A level funded budget may result in teacher cuts, higher class sizes and potential school closings. Dr. H strongly stated that he is not threatening but rather explaining the grave situation. Although it is still questionable what State Aid will be for FY06, Dr. H is expecting State Aid to increase five to eight percent,which could only represent approximately$300,000. With this in mind,he requested that the Finance Committee give strong consideration to allocating the delta in Chapter 70 funds directly to the School Department. Dr.H expects the School Committee to approve this budget by January 25, and delivery to the Town Manager will happen around February 1. 'ice Station Update: Chairman Watkins provided the group with an update regarding a misprint in the local paper. Chairman Watkins ,handed out an updated graph of the debt service. The Committee members discussed the graphs prepared by Mark Rees and Chairman Watkins. Revenue/Fixed Cost Advisory Committee: Mark Nichols,Chairman of the Committee,publicly thanked Paul Stewart for his contribution to preparing the final report. A copy of the final report went to all members present,as well as some correction handouts. In addition, Paul Stewart stated that this report will eventually be made available on line. Paul and Mark led the members through the details of the FY06 Revenues and Fixed Cost projections. Paul, once again,shined in ability to create those large spreadsheets filled with color and detail. A job well done to all! Other: Chairman Watkins handed the first draft of the Capital Improvement Plan. Adjournment: Vice Chairman Mitchell made the motion to adjourn, seconded by Mark Nichols,at 8:30PM. All those present voted unanimously in favor of the motion. The next meeting will be held on January 13,2005.