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Home My WebLink About2018-02-13 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date February 13, 2018 Meeting Location: School Administration Building, 566 Main Street Timothy Tschirhart, TT, Chairman X Ed MacMillian EM X Jennifer Goldman, JG,Vice Chair X Divya Bhatnagar, DB X Karin Blake, KB X 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 Andrew Maylor(AM), Town Manager Lyne Savage (LS), Budget Director/Town Accountant Call to order 6:47 FY2019-2024 Capital Improvement Plan: Final Review, Comments and Recommendation Discussion starts on or about 6:47pm/:00:00:43 on video time TT: Commented that we had a lengthy discussion a few weeks back on this topic (CIP). Any questions, or comments from anyone regarding the CIP. JG: My only comment would be that the CIP Plan that we will be recommending or not recommending is only for 1 year of the 5 years that we are taking a look at. I would like for the record to say that my only concerns is the gap in projects beyond FY19. TT: Went around the table and asked all the Finance Committee members if they had any comments or questions regarding the CIP. LG: Commented that her concern is that there is minimal funding in the out years for school projects and that is a concern. We are going to work through the goals that have been stated. JG: Agreed with LG and wanted to acknowledge this as well. I want to see it. No other Comments were made from Finance Committee Members 1 February 13,2018 TT: Asked if anyone wanted to make a motion regarding the Capital Improvement Plan (CIP) LG: I hereby move we approve the Capital Improvement Plan for the General Fund Enterprise Fund for the Fiscal Year 2019 as presented in the book dated December 2017. SW: Second the motion All were in favor to approve the CIP that is before us FY2019 Town Operating Budget Distributed-Review, Plan Schedule Discussion starts on or about 6:51 pm/00:04:00 on video time TT: We would like to invite AM and LS to talk of the Town Manager's Recommended Budget Book (FY2019) briefly, not to go into detail yet. TT: A lot of effort went into this Budget Book. TT: Asked if there was any difference in content this year from prior years. AM: Responded with saying that it is still the same, with just a few changes, maybe the way that certain data is presented, such as consolidating line items, budget presentation, etc. AM: Also spoke that every year we have a panel that rates our budget and gives us feedback and we use this feedback (if needed) to make any amendments, and changes. AM: Commented that any changes were not dramatic. AM: Commented that this year he spent a little more time on goals, every couple of years you have to do this, we push departments to add goals. We try and have goals with meaningful items that can deliver more services. LS: Spoke of including into the Budget Book the Departmental Revenue sources, such as Departmental funding and also funding of grants within each department. TT: Asked of Highlights AM: Spoke of Government Spending that it should go about 3.5%. AM: Commented that every year we have a process and ask all the Departments to submit a Level Funded Budget, a Service Budget and then any request(s) that they need. AM: Spoke of the cost of an extra election this year (this drives budget up). AM: Also spoke of adding (hiring) a wellbeing person (in the future) for our first responders, also having wellbeing checks for residents, and spoke of The Housing Authority, opium addiction and how our world is different and that we need to change with it. This is all falling on municipal government, than how it was in the past. AM: Spoke of adding new shade trees and combining departments. AM: Commented on the Solar panels on Osgood Street and how they signed a credit arrangement and that they will generate $86,000.00 a year in revenue growth for the next 20 years and save the Town a 15% discount on electricity over the next 20 years. AM: Spoke of how the Town is managing health insurance and that they also purchased two electric cars. 2 February 13,2018 AM: Also spoke of the land being donated by a developer, to the Town for the proposed Senior Center that will include parking (with no cost to us).This will be close to a million dollars donated to us in assets. JG: Asked if the present Senior Center will be demolished(when the proposed one is built). AM: Responded we have 2 years to think about it, we can be creative with options, maybe renting it would be an option. We need to think this through before we take down a building, we have time to talk about this. SW: Can you disclose who this developer is. AM: MINCO AM: Discussed that we can possibly see revenue to the Town for the Forgetta Farm Project in or about FY20. JG: Asked of the residential and commercial ratio as it relates to tax revenue. AM: Residential is 87% and 13% commercial. TR: Asked of his first year with the Town of North Andover AM: Responded December 16, 2011 TR: If you look back to 2011 what was your vision for the Town of North Andover. Did it happen the way you thought? AM: I think we are further ahead than we thought, in a good way. I appreciate the positive and patience of not doing certain things. AM: My biggest concern today is that we are reflecting on where we are today and not where we were in 2011. This is a great community we had negative concerns twice, between the years of 2000-2009 and this proves we have managed well through the rocky period. AM: Commented that raising taxes are not the answer to solve downward directing revenues. AM: In the future (speaking hypothetically) there may be a time that we may need to rely on our flexibility and also rely on our reserves when and if we go through the tough times until things come back up. We have prepared for this day(with our reserves) if needed. AM: Stated that you cannot raise taxes by 2 '/z% without an override. CT: Expressed to everyone that he speaks just for himself, not the Finance Committee nor the OPEB Committee (CT is a member of both committees) and spoke of his worry and concerns with the future and financial state with regards to OPEB. KB; Responded to CT on his concern with OPEB and stated that the Selectmen are the ones that set the budget policy, this is where we need to address the question and perhaps the pressure. The Finance Committee Members as well as AM continued to make comments, asked questions 3 February 13,2018 and expressed their opinions and concerns on OPEB throughout the entire meeting. Many of the Finance Committee members were very passionate when speaking on this topic. EM: Stated that he was curious and asked AM if it is a Stated Mandated thing (OPEB) do we have a mechanism where the Town communicates with our Local State Rep? What is Massachusetts doing about this? AM: It is not actually a State mandated item, it is Federally mandated. This is not a State problem, but a National problem. DB: Stated that maybe we should look into a new hiring process. TT: I would like to make sure we address 2 topics in our Finance Letter one is OPEB and the other one is Schools. Finance Committee Members thanked LS and AM for coming tonight. Revenue Fixed Cost Committee Non-Departmental Expenditures Detail(Tim & Liz) Discussion starts on or about 8:11 pm/01:23:00 on video time LG: Summarized the Fixed Cost piece but reminded everyone that we already spoke on the Revenue piece. The FYI Revenue fixed Cost Expenditures are actually down 1.1 million at a 3.9%reduction overall. LG: Noted that Group insurance is only up by 2.3%. JG: Suggested that next year the Revenue Fixed Cost Committee should have 2 members join from the Finance Committee, one should be a seasoned member of the Fixed Cost Committee and the other member should be a newbie. LG: That is a great idea. FinCom Meetinp_Warrant Letter Discussion starts on or about 8:24 pm/01:36:00 on video time TT: Spoke of the Finance Committee Letter (the May letter) and stated that 75% of this letter should be a combination of OPEB and Schools. New Business Discussion starts on or about 8:43 pm/01:56:00 on video time Spoke of the upcoming meetings and of the next meeting on March 6th 4 February 13,2018 Approval of Minute January 23, 2018 Discussion starts on or about 8:44 pm/01:57:00 on video time KB: made a motion to approve minutes as written LG: Second All were in favor Approval of Minute January 30, 2018 LG: made a motion to approve minutes as written JG: Second All were in favor Ad'ournment 8:50 PM LG: made a motion to adjourn JG: Second the motion All in favor to adjourn Document Table Agenda Finance Committee Meeting for February 13, 2018 Minutes for January 23rd and 30t'', 2018 FY19 Revenue Fixed Cost Projections—RFCC Worksheet CIP General Fund Enterprise Fund 2019-2023 Town Manager's Recommended Budget Report for Fiscal Year 2019 5 February 13,2018