HomeMy WebLinkAbout2006-02-13 Board of Selectmen Minutes BOARD OF SELECTMEN MINUTES FEBRUARY 13, 2006
CALL TO ORDER: Rosemary Connelly Smedile called the meeting to order at 7:05 PM at Town Hall
Meeting Room.
ATTENDANCE: The following were present: Rosemary Connelly Smedile, Chairman; James Xenakis;
Donald B. Stewart; Mark J.T. Caggiano; Thomas Licciardello; Mark Rees, Town Manager; Ray Santilli,
Assistant Town Manager.
EXECUTIVE SESSION:
James Xenakis made a MOTION, seconded by Mark Caggiano, to move into Executive Session to
discuss bargaining with union employees, negotiations with non-union employees and real estate
matters. Vote approved 5-0.
The Board of Selectmen was individually polled and each voted to move into Executive Session. Donald
Stewart yes; James Xenakis yes; Mark Caggiano yes; Thomas Licciardello, yes, and Rosemary Smedile
yes. Vote approved 5-0.
APPROVAL OF MINUTES:
James Xenakis made a MOTION, seconded by Donald Stewart, to approve the minutes of January 23,
2006, Open Session as written and Executive Session as written; February 6, 2006, Open Minutes as
written. Vote approved 5-0.
COMMUNICATIONS,ANNOUNCEMENTS, AND PUBLIC COMMENT:
New Business Recognition —The following new businesses were presented Certificates of Appreciation
from the Board of Selectmen. Thunder Sports, 137 Turnpike Street and Fantastic Sams, 1211 Osgood
Street.
Ted Tripp, 262 Boston Road, asked if the Newspaper Racks by-law has been incorporated. Mr. Tripp also
asked if the municipal and school departments are exempt from paying a surcharge on electric bills for
the underground utilities project.
The Town Manager said that he would provide the information at a later date.
FY05 Audit and Management Report
The Town's outside auditors Christian Rogers of Sullivan, Rogers and Company, LLC presented an
overview of the Town's financial statement and management letter for the year ending June 30, 2005.
Financial highlights are as follows:
1). The assets of the Town exceeded its liabilities at the close of the most recent fiscal year by
$129,069,748(net assets). Of this amount, $25,003,506(unrestricted net assets)may be used to
meet the government's ongoing obligations to citizens and creditors.
2.) The Town's total net assets increased by$39,515,372.
3.) As of the close of the fiscal year, the Town's governmental funds reported a combined ending
fund deficit totaling($23,998, 150); an increase of$528,117 in comparison with the prior year.
Approximately$8,005,166 represents unreserved fund balance of the general fund, special
revenue, nonmajor capital projects and permanent funds. The capital projects fund deficit totaling
$32,735,565 will be funded by intergovernmental revenues and bond proceeds in future fiscal
years. The Capital projects fund is currently funded via short-term debt.
4.) At the end of the fiscal year, undesignated fund balance for the general fund total$990,869, or
1.4 percent of total general fund expenditures.
5.) The Town's total gross bonded debt increased by$7,355,161 during the fiscal year, $16,127,000
of new debt was issued.
Board of Selectmen Minutes February 13, 2006 2
As part of the audit, Mr. Rogers recommended that management familiarize itself with the requirements of
the new accounting and financial reporting requirements Statement No. 45 for post-employment benefits
and other than pensions by The Governmental Accounting Standards Board (GASB) and prepare for its
implementation. The Town's required implementation date of GASB statement No. 45 is FY2009.
Mr. Rogers recommended changes to the School Lunch Fund Deficit of approximately $253,000. The
deficit is attributable to a net loss during fiscal year 2005 totaling approximately $434,000. The drastic
change in fund balance is the result of lunch prices not being adjusted to meet new and/or increased
costs of the program. 7.5% salary increases totaling approximately $107,000; custodial charges totaling
approximately $25,000; utility cost totaling $60,000; health insurance benefits charged during FY04 of
$146,000 and FY05 of$148,000.
Mr. Rogers commented on School Department Accounts Payable and Purchasing instances where dates
on fiscal year 2005 invoices were altered and replaced with a fiscal year 2006 invoice date (July 1, 2005).
The invoices identified were all related to School Department revolving funds. He recommended that
vendor invoices not be altered from their original form and that all purchases only be initiated when funds
are authorized and available to pay for goods and services.
Mr. Rogers commented on Chapter 90 Highway Grant Deficit totaling approximately$194,000 and
accumulation of charges from prior years.
Mr. Rogers commented on the Charts of Accounts and Accounting System that the Town's general ledger
and accounts receivable systems are not integrated. As a result, the same information is processed twice
—once by the Treasurer/Collector and once by the Town Accountant. The current process is inefficient.
We recommend that the accounting system be designed in a manner that management integrate the
Treasurer/Collector's detailed accounts receivable module with the Town's general ledger.
Mr. Rogers recommended that the Town implement procedures to reconcile the outstanding balance of
performance bond deposits between the Town Accountant, Treasurer/Collector and originating
departments. Any discrepancies between the records of these departments should be appropriately
adjusted in a timely manner.
Town Accountant's Quarterly Report
Lyne Savage, Town Accountant reviewed the Budget Status Report for the revenue and expenses for the
second quarter ending December 31, 2006. Motor vehicle bills go out in February and this is when the
main billing for the fiscal year accrues. Revenue comes in during March and April. Although some of the
revenues are running slightly below the target percentage, as an aggregate these line items are not of
any major concern, other revenue sources such as Building permits, Plumbing permits and Interest
Income are coming in at a higher then projected level and could offset any potential short fall in the
revenue. Water revenues are running at 57.8% and Sewer revenues are running at 60.2%, which is
above the target percentage for this point in the fiscal year and expenditures are running at 36%.
Stevens Estate revenue collections are running at 66.1% with expenditures at 65.4. As an aggregate the
expenses are in at 45.09%, which is below the target percentage of 50%. Although there are several
department expenses that are running above the 50% target range, they are okay due to normal
operations.
James Xenakis made a MOTION, seconded by Mark Caggiano, to move out of order item VIE under New
Business out of order. Vote approved 5-0.
NEW BUSINESS
Sign by-law enforcement
The Town Manager Mark Rees has received a number of complaints about the signs and flags used by
local businesses and added an elderly woman had tripped over a freestanding, A-frame sign on Main
Street. So he asked the Building Inspector Gerald Brown to visit businesses and educate business
owners of the town's zoning rules governing signs.
Inspector Brown said that he has been visiting businesses and verbally warning them of the violations
which carried a $300-a-day fine. Brown said that A-frame sandwich board signs are especially
Board of Selectmen Minutes February 13, 2006 3
dangerous because they could blow over in a strong wind and harm pedestrians. Low hanging flags can
also be dangerous. Brown said that these should come down immediately.
Business owner Greg Afarian, owner of Prime Mortgage Associates at 18 Waverley Road, said he was
told to remove an A-frame sign from his driveway and a small neon :OPEN" sign from his front window or
face steep fines for breaking the rules. He was disappointed on the approach used by the building
inspector.
Business owner Leslie from Rholphs Restaurant also asked about the legality of the shamrock neon signs
in the restaurant's windows.
Until the bylaw can be rewritten, the Board ordered Brown to focus his efforts only on signs that endanger
the public, including A-frames and low-hanging flags.
OLD BUSINESS:
Sign Warrant for March 2, 2006 Special Town Meeting
James Xenakis made a MOTION, seconded by Mark Caggiano, to sign the Warrant for the March 2, 2006
Special Town Meeting. Vote approved 5-0.
NEW BUSINESS:
FY07 Town Manager's Recommended General Fund Operating Budget
The Town Manager presented his recommended FY07 Operating Budget. After summarizing the Town's
revenues and expenses, the Town Manager said given projected increases in health insurance, salaries
and other operational expenses compared to the minimal increase in operating funds, the result would be
another year of service reductions to the residents of North Andover. This continues a trend of the last
few years, however the town's reserves and other one time financial sources are unable to offset drastic
decreases in services. The amount of funds available for school and municipal departmental operating
budgets after subtracting non-departmental costs from projected revenues is increasing by $349,052 from
FY06 appropriations or less then 0.8%. It is recommended that $31,460,010 be allocated to the school
department and $15,453,423 be allocated to the municipal departments.
The Town Manager suggested making the following cuts to balance the budget.
1. Public Safety Division, Eliminate three positions: a police officer, the fire prevention lieutenant
and a communications officer.
2. Public Works Division, Eliminate one laborer's position.
3. Community Services Division, eliminate three full-time positions and two part-time positions.
4. The Library, Elimination of the Assistant Director and two part-time positions.
5. Youth Center, Eliminate one position.
6. Council on Aging, Eliminate the position of Assistant Program Manger.
7. Finance Division, Eliminate the position of Treasurer/Collector
8. Accounting Office, Reduce hours from full-time to part-time for Assistant Town Accountant
9. Assessors Office, Eliminate one clerical position
10. Town Clerk's Office, Eliminate one part-time clerical position
11. Town Manager's, Reduce hours of two full-time clerical positions
The Town Manager said that the town must seek a variety of ways to reverse our present course. These
include advocating for more equitable state aid, the elimination of state mandates, finding ways to reign in
health insurance costs and seeking additional revenues. However, while we will always strive to operate
as efficiently as possible, reducing operating costs and not impacting services is no longer an option as
clearly demonstrated in the FY07 recommended budget.
The Town Manager gave special thanks to Assistant Town Manger Ray Santilli, Director of Finance Linda
Casey and Town Accountant Lyne Savage for their hard work and for being part of the budget review
team that worked with me in bringing forward these budget recommendations.
This recommended FY06 general fund budget is the beginning of discussion and deliberation by Town
Officials and residents on the Town's budget that will culminate at the Annual Town Meeting beginning on
May 8, 2006.
Board of Selectmen Minutes February 13, 2006 4
Response to State Senators Request for State Budget Priorities
State Senators Baddour and Tarr requested that towns in their district communicate to them our priorities
for the FY07 state budget. North Andover stated five short-term budgetary priorities, three long-term
budget priorities and three major local projects.
Review of Articles for May 8, 2006 Annual Town Meeting
The Town Manager gave the Board a listing of 30 potential Articles for inclusion in the warrant for the May
8, 2006 annual town meeting. The Board will be asked to vote on these articles at their next scheduled
meeting on February 27, 2006.
Land Disposition: Timber Lane
James Xenakis made a MOTION, seconded by Mark Caggiano, to approve the sale of a certain parcel of
land containing 7,080 square feet of land on Timber Lane, shown as Parcel A on Plan of land entitled
"Form A Lot Line Adjustment Plan, Project Title: Town of North Andover Timber Lane, North Andover,
Essex County, Applicant&Owner: Town of North Andover, Scale: 1" =20', dated February 11, 2005,
prepared by W.C. Cammett Engineering, Inc.,"to H. David Founier, of 15 Timber Lane, North Andover,
Massachusetts, for the sum of One Thousand Seven Hundred Seventy ($1,770.00) Dollars, and the
additional payment to the town of Six Hundred ($600.00) to be applied to the town's costs associated with
this conveyance. Vote approved 5-0.
Police Civil Service Certification List Request
Police Chief Richard Stanley requested approval from the Board of Selectmen to submit a requisition to
the Massachusetts Human Resources Division (HRD)for a certified list for the appointment of two (2)
permanent Police Officers because of two recent vacancies within the department.
James Xenakis made a MOTION, seconded by Mark Caggiano, to approve the submittal of a requisition
to the Massachusetts Human Resources Division for a certified list for the appointment of two permanent
Police Officers. Vote approved 5-0.
Tax Title & Foreclosure Proceedings
Information was brought forward from Debbie Wilson, an employee in the Tax Office with suggestions
regarding selling town owned property and also delinquent outstanding tax titles to $1.7 million. The
Town Manager will be looking at these 17 parcels of Town owned land to see if these are buildable lots or
wetlands. The Town is contacting a Tax Title Attorney and will contact homeowners by letter requesting
payment of back taxes. The Town will work out payment plans with homeowners.
Selectman Licciardello said building permits or any other town permits should not be issued to anyone
that is a delinquent tax payer whether a homeowner or a developer. Community Development
departments handling these permits should be aware of these people.
TOWN MANAGER'S REPORT
Police Lt. John Carney wrote a letter of thanks to the Greater Lawrence Technical School for repainting
some existing police cruisers to the black and white design of the newly acquired vehicles.
On January 26, Selectmen Smedile, Licciardello and the Town Manger attended a dinner where Police
Officer Charles Fucca and Fire Fighter Michael Colbert were honored by the Exchange Club of Lawrence
as North Andover's Police Officer and Fire Fighter of the Year.
Note: the Board returned to Executive Session and would not return to Open Session
ADJOURNMENT:
Donald Stewart made a MOTION, seconded by Mark Caggiano, to adjourn the meeting at 11:00 PM.
Vote approved 5-0.
Adele J. Johnson
Administrative Secretary
James M. Xenakis, Clerk of the Board