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Home My WebLink About2020-01-07 Finance Committee Minutes (2) r v TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date January 7, 2020 Meeting Location: School Administration Building Sasha Weinreich, SW Chairman X Ed MacMillian EM, Vice Chair X Timothy Tschirhart, TT X Divya Bhatnagar, DB X Charles Trafton, CT Jennifer Luz, JL X Thomas Ringler, TR X Kevin Foley, KF X Christine Allen, CA X Angela Ciofolo, AC X Note: All FINCOM votes are subject to a re-vote upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Non Finance Committee Members in attendance Melissa Rodrigues (MR), Town Manager Lyne Savage (LS), Finance Director/Town Accountant James Mealey(JM). Asst. Superintendent, Finance &Operations Pledge of Allegiance 07:00 Call to order Discussion starts on or about 7:00 pm/ 0:30 on video time SW: Welcome everyone and Happy New Year! Tonight we have our new Town Manager, Melissa Rodrigues and Lyne Savage to present our 5 year forecast and then the Capital Improvement Plan. Presentation of the Town Manager's Five Year Forecast Discussion starts on or about 7:01 pm/01:00 on video time Reference: Town of North Andover Financial Forecast 2021-2025 MR: Thank you for having me. Typically I like to start off with presenting everyone with the financial condition of the town and I tend to present things in a layman friendly way. MR: Reviewed the "Town of North Andover Financial Forecast Fiscal Years 2021-2025", presentation that was submitted into the meeting packet. January 7, 2020 Page 1 MR: Highlighted a variety of topics regarding the 5 year forecast. MR: Commented on the Financial Condition Reserves (page 2) and the amount of each item. MR: Moved onto The Projected Financial Forecast, stating it is a useful management and policy making tool and it helps municipalities make smart policy choices. MR: Continued with the presentation. When it comes to the projected Financial Forecast we are always careful and conservative. It is not detailed like a budget. MR: Spoke of various Revenues and then stated that Real Estate Property Taxes account for 76% of all revenue received annually. MR: Commented on new growth and taxes that comes from new construction. MR: Also explained Intergovernmental Revenue, to the Committee and Local receipts (anything that comes into the Town as a fees, receipts from ambulances or fines). MR: Moving on to Operating Transfers/Other Revenue, spoke of actual revenue received, an example of this is the Enterprise Funds. MR: a variety of topics were discussed, such as; expenditure forecast, health insurance, using benefit consultants, changes and also preparing for changes, reserves, debt, potential expenses, having respect for our finances, estimated retirement appropriation, etc. MR was asked a variety of questions from the Committee, and also concerns from the Committee were expressed. MR: Spoke of looking for new and creative ways of doing things for the benefit of the Town. Presentation of the Town Manager's Capital Improvement Plan Discussion starts on or about 7:22 pm/00:22:00 on video time Reference: Capital Improvement Plan General Fund 2021-2025 Presentation form MR: Wanted to get into the basics of a Capital Improvement Plan. The CIP identifies capital items that are typically defined as tangible assets or projects that cost more than $25,000, and have a minimal useful life span of 5 years, it provides a planning schedule and defines financial options. MR: We are looking at two things, Capital Plan and Capital Budget. MR: Spoke on a variety of projects and how some things are not planned or expected but we try to anticipate if we need additional funds. MR: Commented on how we need to account for inflation, and the importance of getting good cost estimates. MR: Spoke of the Senior Center Project, debt, the 5 year plan (subject to change), operating budget, free cash, etc. MR: Went on to say that her recommendation for this year is that we use 5 million dollars from free cash. The Finance Committee asked questions to LS and MR. Also Projects past and future were discussed, inflation, bids, good cost estimates, bonding money, Facility Master Plans, the Senior Center project, and also issues with the cost of inflation (when a project is delayed), interest rates, bids, funds to cover debt, AAA bonding, playgrounds and fields, middle school, maintenance cost including routine and major etc. January 7, 2020 Page 2 MR: Continued with the CIP Presentation speaking of the Water, Sewer, and Stevens Estate. JM: Spoke of maintenance at the schools, such as paving, stairs, railings etc. Public Comment Discussion starts on or about 7:59 Pm/00:59 on video time SW: Wanted to give the public the opportunity to express any concerns or ask questions to MR and LS. Bill Callahan, 23 Lyman Road questioned and had concerns with the 5 year forecast in particular FY 17-FY 19 (actual). Stan Limpert, at 43 Stonecleave Road questioned when the last ladder fire truck was purchased, and asked if we are replacing or adding. MR: responded that it is a pumper that we are replacing this year. The Pumper being replaced is a 2004. KF and LS: Stated that the last ladder truck was purchased in 2011. SW and the Finance Committee thanked MR and LS for coming tonight. Old Business Discussion starts on or about 8:10 nm/01:09 on video time SW: I am going to ask JL to give us a quick recap on the Stevens Estate Advisory Committee JL: The Committee has met 3 times and they are in the process of information gathering. Spoke of presentations that were presented at these meetings. JL: Stated that they are planning a pretty aggressive outreach to the public in regards to the Stevens Estate, and what would the public like to see happen to the estate. JL: Commented on outside agencies such as Trustees of Reservation and trying to reach out to similar facilities that are publicly owned. JL: Informed the Committee that the next Stevens Estate Advisory Committee meeting is scheduled in about 3 weeks. SW: Moved on to the Non-Disclosure Agreement (discussed at past meetings). SW: Stated that she heard back from the Town Manager and found out that North Andover has utilized 3 Non Disclosure Agreements that were signed in the last three years. SW: Informed the Committee that at the next Finance Committee meeting we will have a presentation regarding the school's operating budget. January 7, 2020 Page 3 Approval of minutes for October 29, 2019 Discussion starts on or about 8:17gm/ 01:17 on video time CA: Made a motion to approve the minutes for October 29, 2019 JL: Second the motion All were in favor to approve the October 29th, 2019 Minutes Adjournment 8:22 TT: Made a motion to adjourn the meeting CA: Second the motion All were in favor to adjourn Document Table -Agenda Finance Committee Meeting for January 7,2020 -Minutes from October 29,2019 -Capital Improvement Plan General Fund 2021-2025 -Capital Improvement Plan General Fund 2021-2025 Presentation form -Town of North Andover Financial Forecast 2021-2025 Presentation Form -Town of North Andover Enterprise Fund Overhead Allocation January 7, 2020 Page 4