HomeMy WebLinkAbout1998-11-30 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES NOVEMBER 30, 1998
CALL TO ORDER: Keith Mitchell called the meeting to order at 7:30 p.m.
ATTENDANCE: The following were present: Keith A. Mitchell, Chairman;William B. Duffy,
John R. Leeman, Jr.; Donald B. Stewart; David M. Torrisi; Robert J. Halpin, Town Manager.
APPROVAL OF MINUTES: William Duffy made a MOTION, seconded by John Leeman,to approve
the Minutes of November 16, 1998;vote approved 5 —0.
COMMUNICATIONS,ANNOUNCEMENTS,AND PUBLIC COMMENT:
Presentation of Certificate of Appreciation to John J. Munro, IV, Life Scout, Boy Scout Troop 87. Keith
Mitchell presented John with a certificate of appreciation for building five benches for the Old Center
Common. John Munro thanked everyone who helped him including the Department of Public Works
and the Historical District Commission.
Festival Committee. Keith Mitchell thanked all those who helped with the Festival. A special thank
you to Bill McEvoy, Chief Dolan, Joyce Bradshaw and Karen Robertson.
CONSENT ITEMS:
Request from the American Field Service (AFS)to use the Old Center Common to hold the 27th Annual
Sheep Shearing Festival on Sunday, May 16, 1999, from 10:00 a.m. to 5:00 p.m..
Leo Chabot, AFS Chapter President, addressed the Board requesting the Town waive services including
the cost for police, DPW and EMT. He said that North Andover has the highest costs for these services.
He further stated that AFS is a non-profit organization supporting scholarships for students to study
abroad.
The Selectmen requested that more information be attained as to charges by other towns. This agenda
item will be discussed with the Police Chief and Fire Chief at the December 7, 1998 Board Meeting.
Donald Stewart made a MOTION, seconded by John Leeman to approve use of the Old Center and
waiving of fees is tabled until the December 7, 1998 Selectmen's meeting; vote approved
5 - 0.
OLD BUSINESS:
FY 1998 Audit—Draft Financial Statements and Presentation. Scott McIntyre of Melanson, Heath&
Co.,the Town's auditors, reviewed the FY'98 draft financials. He stated that the unreserved fund
balance as of June 30, 1998 was $504,000.
He reviewed the reclassing of health insurance into a separate account in FY'98. He stated that the
deficit of$589,000 in this fund was part of the general fund in FY'97.
Water Rate FY 1999— Status Report and Discussion of Rate Adjustment. Scott McIntyre stated that it is
the opinion of Melanson, Heath that the Town needs a minimum rate of$2.73 to produce the revenue
needed for FY'99. This rate leaves little room for error.
Board of Selectmen Minutes November 30, 1998 Page 2
The Town Manager stated that he has done some analysis. In this analysis consumption was level
funded in order to make rates more predictable. If a rate of$2.85 is established for FY'99, it will
produce modest surpluses and provides for a margin of error.
Mr. McIntyre also addressed the abatement issued to Lucent Technologies that occurred several years ago
and is believed to be proper. William Duffy requested that the Lucent abatement issue be included in the
Management Letter and Mr. McIntyre assured him it would be. He further stated that the abatement was
substantial (approximately$250,000). Mr. McIntyre suggested that the Town and Lucent meet to discuss
their manufacturing needs for water consumption.
Mr. McIntyre stated that although the Special Town Meeting authorized the use of free cash to make up
the revenue deficit for FY'99, it does not solve the problem for FY'99.
John Leeman asked Mr. McIntyre if he had any recommendations on adjusting the water rate so that it
does not have to be revised as often. It will be addressed in the Management Letter.
Mr. McIntyre said one of the difficulties is the number of estimated readings. This situation is caused by
the fact that there are approximately 7,200 meters to be read and only one meter reader. This issue is
being addressed by the Town Manager and Public Works.
William Duffy made a MOTION, seconded by David Torrisi,to table this item until the December 14,
1998 meeting when staff can provide alternatives; vote approved 5 — 0.
Water and Sewer Budget Policy and Goals for FY 2000. The Town Manager reviewed his suggested
policies and goals for both the water and sewer enterprise funds for FY 2000. The revenue assumption is
a level 128,000,000 cubic feet of water per year and a recommended water rate of$2.85 per 100 cubic
feet.
Revenue assumptions for sewer is there are modest increases in disposal into the system due to new users
connecting. Under these assumption a rate of$2.75 is suggested.
William Duffy made a MOTION, seconded by Donald Stewart,to table this agenda item to the December
14, 1998 Board meeting; vote approved 5 — 0.
Informational Presentation of Tax Recap Sheet for FY 1999. The Town Manager reviewed the tax recap
sheet for the Board's information. This document is a summary of all the revenue budgets and all the
expenditures that have been approved by Town Meeting. The Department of Revenue reviews this
document to be certain that the Town has a balanced budget.
EXECUTIVE SESSION:
John Leeman made a MOTION, seconded by David Torrisi ,to move into Executive Session to discuss
Value of Real Estate/Public Safety Complex Siting and Town Manager Contract Review at 9:00 p.m.;
vote approved 5 — 0.
Ann M. Keating
Administrative Secretary John R. Leeman, Jr., Clerk of the Board