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HomeMy WebLinkAbout1999-03-22 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES MARCH 22, 1999 CALL TO ORDER: Keith Mitchell called the open session part of the meeting to order at 7:30 p.m. ATTENDANCE: The following were present: Keith A. Mitchell, Chairman; William Duffy; John R. Leeman, Jr.; Donald B. Stewart; James M. Xenakis; Robert J. Halpin, Town Manager. APPROVAL OF MINUTES: John Leeman made a MOTION, seconded by James Xenakis,to approve the Minutes of March 8, 1999; vote approved 5 — 0. COMMUNICATIONS,ANNOUNCEMENTS,AND PUBLIC COMMENT: Keith Mitchell announced that the next airport noise abatement meeting will be held in the terminal building at the airport on March 24, 1999 at 7:00 p.m. Keith Mitchell announced that the Suburban Coalition will hold a property tax relief forum on March 26, 1999 in Weyland at 10:00 a.m. OLD BUSINESS: Revenue Update—FY 1999. The Town Manager stated that at this time in the fiscal year there are several account that are being watched very closely. Kevin Mahoney, Director of Finance &Administration, said he has been tracking the fiscal 1999 revenues. He said real estate tax collections are strong. However he the local receipts section is extremely variable. He did not believe there would be a significant surplus in any of the local receipt line items. In total local receipts are down by$309,342, but he feels motor vehicle taxes will be coming in. He said fees are down in part because of decreased building permits. Mr. Mahoney said estimates were based on fees that were expected to be collected from Wheelabrator. The Town Manager said that a lot depends on the Wheelabrator permits being issued before June 30, 1999. Mr. William Scott, Community Development and Services Director, also said that delays in two subdivisions lowered permit fees. The other area of concern is water enterprise revenue. Kevin Mahoney announced that Lucent Technologies paid their water bill. He thanked Lucent for their cooperation. Because of lower building permits, fees for water hook-up are also lower, and he is expecting a deficit of approximately$116,000. He is predicting a$40,000 consumption related deficit. The Board requested that they receive a monthly analysis of actual revenues versus budgets. Board of Selectmen Minutes March 22, 1999 Page 2 Water and Sewer Enterprise Funds. Debt Service—Property Tax Exclusion Options. The Town Manager presented scenarios for the exclusion of debt service based on two options: 1) excluding all or a portion of debt service for all water and sewer users and, as a result raise the debt on property tax bills for all taxpayers; or 2) exclude all or a portion of debt service from residential users only and, as a result, raise the debt on the property tax bills for residents only. William Duffy said only residential users should be affected by any change. Keith Mitchell said that in the beginning he was in favor of looking at the issue. He also believes Wes Gardner's suggestion that a water/sewer rate study be done should be looked into. He also does not believe the savings for residential users is significant. Keith Mitchell asked if once the project is paid, are the charges removed from the general tax levy. He stated that the Board needs additional information on the betterment policy, future projects and the cumulative impact over 10 years. The Town Manager said the Board of Selectmen can review it every year and make a decision on the issue. James Xenakis made a MOTION, seconded by John Leeman,to continue this matter and conduct a public hearing on April 5, 1999 in order to give residents an opportunity to present their opinions; vote approved 5 - 0. Mrs. Bernice Fink, a resident, said she is opposed to having the water debt services on the tax rate. Donald Stewart also is opposed to this change. Mrs. Lillian Boyle, a resident at Sutton Pond, questioned the water charges that were not billed by the Town. A meeting will be scheduled to address this issue. Water and Sewer Enterprise Operating g BudgBudgets—FY 2000. The Town Manager presented the proposed operating budgets that have been reduced from the department requests. He noted that there is very little that can be cut from the Water Treatment plant operating budget. The Plant's expenses are approximately$258,000 more than revenues. The sewer portion has an assessment of$975,000 which is paid annually to the Greater Lawrence Sanitary District. The Town Manager said that possibly the Town would receive approximately $165,000 from the proposed sludge management facility and this would then lower the assessment. John Leeman made a MOTION, seconded by William Duffy,to recommend the water and sewer enterprise fund budgets as outlined; vote approved 5 — 0. Water and Sewer Enterprise Capital Projects. The Town Manager reviewed the capital portion of the budget. There is $122,500 capital item to look at a distribution system extension into the Forest Street area and$736,000 to replace water meters would incur long-term debt. Other items include engineering for water projects, G.A.C. filter replacement(deferred from last year)and the Bradford School standpipe included in the recommended budget. In the sewer area,the Town Manager recommended deferring most items until the fall with the exception of the East Side sewer replacement and sewer pump station engineering which totals $115,000. Mr. Duffy noted that Phase IIID encompasses Dale Street, portions of Russet Lane,Winter and Glencrest, stating that some portions of these have been completed. Board of Selectmen Minutes March 22, 1999 Page 3 John Leeman made a MOTION, seconded by Donald Stewart,to table this vote until the April 5, 1999 Board of Selectmen meeting in order to review more information to include sewer program Phase III D; vote approved 5 — 0. FY 2000 Operating Budget: The Town Manager reviewed the FY 2000 Operating Budget. The budget is constrained by 4.5%revenue growth. Taking into account debt service and Essex County retirement,the growth is 3%. The Town Manager said three area of the budget deserve further consideration. They include class sizes in the schools,the second ambulance and EMS staffing and a continuing problem of maintenance of building facilities. Keith Mitchell recommended that the Board vote to accept the Town Manager's budget as drafted. He also said the Board should address the needs areas that were brought up by the Town Manager. Keith Mitchell recommended seeking a moderate general override in order to fund $1 million for the schools (primarily for additional teachers) and an additional $325,000 for the Fire Department. Keith Mitchell recommended establishing a sub-committee comprised of the Town Manager, a Board member, Superintendent Allen, a School Committee member and a Finance Committee member to develop a strategy to actively lobby the State Legislature concerning education funding. He also recommended establishing another committee comprised of the Town Manager, a Board member and three citizens to develop a strategy for publicizing the senior citizens' property tax exemption deferral program. John Leeman suggested putting a notice in with the tax bills and William Scott recommended including an article in the senior citizens' newsletter. John Leeman made a MOTION, seconded by Donald Stewart,to appoint Keith Mitchell and William Duffy to the sub-committee regarding a strategy to lobby the State Legislature concerning State funding for education; vote approved 5 — 0. John Leeman volunteered to work with William Scott on a committee to publicize property tax deferment for senior citizens. William Duffy made a MOTION, seconded by Donald Stewart,to appoint John Leeman and James Xenakis to a committee to assist in the publicizing of the deferment for seniors; vote approved 5 — 0. Donald Stewart made a MOTION, seconded by William Duffy,to recommend the Town Manager's budget as proposed and to forward it to the Finance Committee; vote approved 5 —0. Mrs. Bernice Fink addressed the Board concerning the potential override. She believes that it is time "to get our financial house in order." She stated that she believes the problem is the school system because it consumes a disproportionate share of the budget. She said she believes in smaller class sizes but building do not have to be so elaborate and computer technology should be maintained at the highest level in the high school and the lower grades should focus on the basics of computer technology. Mr. Yong Nam presented the League of Women Voters State education formula. He said that North Andover should be receiving approximately 25%in State aid and is only receiving 13%. He also discussed the importance of MCAS testing and the necessity to fund the schools. Rosemary Smedile, Chairman of the Finance Committee, reviewed the Committee's opinions regarding the budget. She said that although GIS is a worthwhile project that unless department's can find the Board of Selectmen Minutes March 22, 1999 Page 4 funds,the Committee will only recommend it with an override. Other override recommendations include $348,500 for playing fields, $1.0 million for the schools and$325,000 for the Fire Department. The Committee believes the residents should decide the importance of these items. Keith Mitchell polled the Board on their support of an override. William Duffy said there has to be a reasonable balance between meeting the needs of residents and the burden to taxpayers and is open to discussing needs. John Leeman said although he is not in favor of overrides, he does acknowledge the need for teachers in the school system. James Xenakis is supportive of the schools' needs. Donald Stewart said there are needs in all areas but meeting those needs is a dilemma. NEW BUSINESS: Amend Building Permit Fee Policy and Procedure to Clarify the Cost of Construction Basis upon which Building Permit and Related Fees are Calculated. The Town Manager stated that the building permit calculation is $6.50 per thousand. This is based on total construction costs Wheelabrator is questioning this calculation formula. John Leman made a MOTION, seconded by William Duffy to add Section I.D. which states: "The term cost' as used I the paragraph, and as used in the fee regulations pertaining to electrical, plumbing and mechanical systems permit fees, means the total cost of the project for which such permits are being sought, and specifically includes but is not limited to,the costs of buildings, structures, vessels, silos, ducts, pipes, boilers, fixtures, and other equipment which, once installed, is not reasonably practicable or expected to be removed and re-used for the same purpose at a different location"; vote approved 5 — 0. ADJOURNMENT: John Leeman made a MOTION, seconded by James Xenakis,to adjourn the meeting at 10:00 p.m.; vote approved 5 — 0. Ann M. Keating Administrative Secretary John R. Leeman, Jr., Clerk of the Board