Loading...
HomeMy WebLinkAbout2017-10-17 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date October 17, 2017 Meeting Location: School Administration Building, 566 Main Street Timothy Tschirhart, TT, Chairman X Ed MacMillian EM Jennifer Goldman, JG, Vice Chair X Divya Bhatnagar, DB X Karin Blake, KB Charles Trafton CT X Thomas Ringler, TR X Angela Ciofolo, AC X Liz Gerron, LG X Sasha Weinreich, SW X Note: All FINCOM votes are subject to change upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Non Finance Committee Members in attendance Jim Mealy(JM), Assistant Superintendent and Chief Financial and Operations Officer Call to order 6:50 North Andover School Budget, Forecast & Strategic Plan Overview—Jim Mealy Discussion starts on or about 6:51 pm/1:06 on video time TT: I would like to call Jim Mealy(JM), who is the Chief Financial Officer of the North Andover School System to present the School Budget to us tonight. The School Budget is about 60%-66% (roughly) of the entire Town Budget. JM: Stated to the Finance Committee that the questions that you presented to me ahead of time gives a feel of what you are looking for from me. I tried to address your questions in my presentation. If I don't address them,please let me know, and also if you have more questions I will address those as well. With that being said JM presented his "North Andover School District Financial Summary" presentation to the Committee. JM: Spoke of the Components that make up the School District Financial Components. (Page 2 of the presentation). JM: Continued on with the different items/components that make up the School Budget and also spoke of the factors that go into putting our budget together, such as Enrollment Projections, 1 October 17,2017 Capital Improvement Plan, Strategic Plan, and Budget Directives. We tried to mirror the budget with the Strategic Plan. JM: Instructed the Committee on what makes up the budget, General Funds, Grants, Revolving, Shared Services, Indirect Costs, and Reimbursements (that includes Circuit Breaker and Medicare Reimbursement). JM: Reviewed the overall amounts such as Circuit Breaker, Grants, Revolving Accounts, Shared Services, Indirect costs (benefits), and General Funds (page 3 of the presentation). JM: Commented on Circuit Breaker and stated that fortunately we (the staff) are working hard to ensure that we have services and programs in district that allows us to keep some students (within district). In many cases, some students came back(those that were once out of district). So the loss of money for Circuit Breaker has been offset by bringing some students back. So right now we are okay. JM: Referencing the graph(Page 4 of the presentation), JM stated that the General Fund is the bulk of our School Spending. JM: Also, spoke of Enrollment Projections (on Page 5 of the presentation). Kindergarten enrollment is the hardest one to figure out, we do try and work with the census. JM: Spoke of the various factors that may make school enrollment fluctuate from year to year. JM: Spoke of the Capital Improvement Plan (Page 6 of presentation) and the Facility Master Plan, Technology needs, facility needs and school needs. JM: Also commented on the various school renovations, costs and completed facility/renovation proj ects. This year we are going out to bid on the Kindergarten and they are due November 17th and we are crossing our fingers that the numbers come in at the right price, so that we can move forward with the project. JM: Commented on the Strategic Plan (Page 7 of the presentation) and read the Strategic Objective to the Committee. In summary they are; 1. To ensure all students are provided access to an excellent education 2. To hire and develop excellent educators 3. To provide a consistent and rigorous curriculum that encourages all students to learn to the best of their ability. JM: Commented that research shows that class size has an impact on student achievement. JM: Spoke of class size (page 8 & 9 of the presentation) and how these proposed renovations can open up spaces and add class rooms, which will reduce the amount of students in a classroom. If we can reduce class size that would be great. JM: Commented that they added a Reading Teacher (this is a big initiative to us). JM: Moved on to (page 10 of the presentation), Major Initiatives. JM: Commented one of the things that they negotiated with the teachers was having collaboration time,because that is the key to having a consistent curriculum and this also allows teachers to review work and best practices. 2 October 17,2017 JM: Spoke of Financial Assumption (page 11 of presentation). All Teachers must have a Master's Degree and that the starting average teacher's salary (level 4/5) is $55,000. JM: Spoke of when teachers leave (turnover savings) that are at the top of the salary, their replacements start at a lower rate and spoke of the net difference that is created. JM: Commented on the teachers in the North Andover School System, and how that they are a young experienced staff. JM: Went on to say that the annual salary increase averages about 2% TR: Asked JM how many teachers do we have? JM: Responded, 350 FTT JM: Moved on to the Financial Challenges &Efforts to address Challenges (pages 12 and 13 of the presentation). JM: Spoke of transportation cost for the buses. We are in our final year of our contract. Right now we pay$319.00 a day(this is extremely low), we anticipate it will go up. JM: Moved to the last page of the presentation (page 14), 5- year Summary—Strategic Plan. JM: Commented on the strategic plans of reducing class size, improving teaching and learning, and improving the student services. The Committee asked a variety of questions to JM, Regarding the Master plan. SW: and the rest of the Committee also expressed their concerns and wanted to understand where are we today with the number of proposed additional classrooms, the number of students in each classroom, and affording teacher's salaries with the renovations of the proposed Kindergarten project. JM: Responded that he will provide that information. The Committee continued with many questions and comments to JM. The Committee also spoke of more classrooms, which would be more teachers, creating an added cost. LG: more classrooms with smaller class sizes would mean more teachers. JG: The public needs to know what it is going to take SW: Maybe the public does not want to spend those dollars. TT and the rest of the Committee thanked JM for coming tonight. Old Business-Finance Committee Preamble Discussion starts on or about 8:03 pm/1:14:00 on video time TT: One of the things that came out of the last meeting was our responsibilities of the Finance Committee relative to the Town. TT: Went on to say that LG reminded us of the role that the Finance Committee plays by reviewing the Preamble paragraph that came from Page 1 of the Finance Committee Policies and Procedures. 3 October 17,2017 TT: We as a Committee took on a huge responsibility, we need to review what is presented to us and if needed, challenge the budget, the budget process and the budget forecast. Reaffirmation of FY19 Finance Letter Assignments Discussion starts on or about 8:05 pm/1:15:00on video time TT: Commented and spoke of the assignments of the Finance Committee letter. OPEB and Fixed Cost and Revenue assignments Discussion starts on or about 8:08 pm/1:18:00 on video time TT: Identified DB and LG as a representative to the Fixed Cost and Revenue Meeting, but DB may not be able to make the two meetings scheduled in October. If DB cannot make both meetings then LG or EM can be the potential backups. SW: Stated she could do it if EM cannot Approval of Minutes September 27, 2017 Discussion starts on or about 8:09 pm/1:19:00 on video time JG: Made a motion to approve Minutes as written (clerical error remove TR as an attended member for Finance Committee Meeting on September 27th) SW: Second the motion All in favor New Business Discussion starts on or about 8:13 pm/1:23:00 on video time The Committee spoke of various subjects and topics that can be discussed at future meetings. TT: Spoke of the next meeting for Tuesday, November 14th, stated that Dan Leary will be speaking regarding the MIW. TT: I like the idea of having advanced questions for Dan Leary. Think out of the box, not interested in their business model,but more interested in the financial end of it, and the economic impact to the Town. TT: Asked the committee what they might like to see on the agenda, and asked for suggestions and thoughts SW: Asked if we do receive anything from JM, as a Committee, we should be able to discuss it at the next meeting. Public Comment Discussion starts on or about 8:21 pm/1:32:00 on video time Stan Limpert of 43 Stonecleave Road; Spoke to the Committee and stated that they are on the right track with their questions and concerns regarding JM's Presentation, on the School Budget. Limpert: spoke of the operating cost, labor cost, overcrowding in the Middle School, Capital Cost, revenue, and overrides. The Committee asked questions to Limpert and engaged in conversation. 4 October 17,2017 Limpert: Told a story of a time when they were forced to lay off some teachers right after Town Meeting, when they passed the budget. We had 2-3 out of placement move-ins and we had to lay off teachers, and it was at the end of May. It was the worst possible time that this could happen. TT: Stated to the Committee he was very happy with their questions, conversations and ideas. TT: Also reminded and asked the Committee for questions in advance for our upcoming meeting (to any of our presenters). Ad'ournment 8:37 PM LG: made a motion to adjourn SW: Second the motion All in favor to adjourn Document Table * Agenda October 17, 2017 * Minutes for September 27, 2017 * Questions for Jim Mealy ** Finance Committee Preamble (part of Finance Committee Policies & Procedures) * North Andover School District Financial Summary (Presentation) October 17, 2017 ------------------------------------------------------------------------------------ *Google Doc and Hard Copy **Hard copy --------------------------------------------------------------- 5 October 17,2017