HomeMy WebLinkAbout2019-10-17 Revenue and Fixed Cost Committee Minutes Revenue and Fixed Cost Committee
Minutes of Meeting of October 17, 2019
Meeting brought to order: 8:3 6 AM
Documents/Handouts:
• FY21 Revenue Projections Work-sheet
• FY21 Fixed Costs Projections Worksheet
Present:
Lyne Savage, Town Finance Director
Sasha Weinreich, FINCOM Member
Kevin Foley, FINCOM Member
Dr. Gregg Gilligan, Superintendent of Schools
Jim Mealey, Assistant Superintendent of Schools
Discussion:
• Initial meeting of North Andover FY21 Revenue and Fixed Cost Committee
• Motion made by Jim Mealey and seconded by Sasha Weinreich to name Lyne
Savage as Committee Chair. Motion was approved unanimously.
• Lyne Savage explained role of Committee and how the process works.
• Lyne Savage explained that the revenue projections are based on normal
assumptions and reviewed these with the Committee. Spent time reviewing Motor
Vehicle Excise, State Aid, Building Inspection Fees, and New Growth. Currently
projecting a 2.91% overall increase in revenues ($2,953,438).
• Specific items discussed included:
o Projecting new growth to stay at $650,000 since that is the average we
have been experiencing. While we have seen higher amounts the past few
years, this is due to some large projects and should not be expected
consistently over the years.
o Motor Vehicle Excise Tax revenue projection was increased by $200,000
last year, but should be level budgeted for FY21 based on current data.
o Sasha asked how we project revenues from large projects and how might
these funds be used. Lyne explained that the permit fees should be
considered one-time revenues and we have to wait to see the impact on the
tax base before committing any funds from an increase to the tax base.
o Sasha asked for clarification on the lease funds generated by the cell tower
near the Steven's Estate. Lyne clarified that the lease agreement is with
the Town for the lease of Town property, so legally must be considered
Town revenue.
o Sasha asked for clarification on how the GLSD funds can be used. Lyne
explained that they must be used for public safety expenses.
o The Medicaid Reimbursement amount has been removed from the revenue
projections and we will need to figure out the mechanism for getting these
funds to the School Department at Town Meeting.
o State Aid, as we do each year, we always use the prior year final budget
from the state to project the next year's amount. Jim explained that the
Governor has projected an increase for North Andover for FY21, but this
has not yet been finalized and could be offset by changes to Circuit
Breaker funding, so keeping this projection at the FY20 level makes sense.
o Investment decisions by the Town Treasurer continue to result in an
increase in Interest Revenue, so that projection has been increased to
$6191000.
o Most other items remain the same as FY20.
• Lyne informed Committee that the Committee will have to complete its
recommendation for Revenue Projections to provide a report to the Town
Manager by December 1, 2019. The Committee will then need to meet in January
to approve the Fixed Cost projections. She will be working on these projections,
and historically they have been ready by the end of December.
• Scheduled next meeting for November 12, 2019 at 7:30 AM at Town Hall.
• Motion made by Sasha weinreich and seconded by Kevin Foley to adjourn.
Motion was approved unanimously.
Meeting Adjourned: 9:24 AM