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HomeMy WebLinkAbout2020-01-18 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date February 18, 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 X Jennifer Luz, JL Thomas Ringler, TR X Kevin Foley, KF XXX, AC 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 Denise Casey (DC), Assistant Town Manager Pledge of Allegiance Call to Order Discussion starts on or about 7:00 pm/ 0:00:30 on video time SW: Thank you everyone for coming. I really appreciate it. For everyone watching on TV today we have a very large audience and we are excited to have everyone here. We have the Town Manager, Melisa Rodrigues here to present the “FY2021 Town Manager Recommended Budget” (dated February 18, 2020). Town Manager’s Presentation of Proposed FY21 Operating Budget Discussion starts on or about 7:01 pm/ 0:01:00 on video time Reference: “FY2021 Town Manager Recommended Budget” (dated February 18, 2020). MR: Not sure if anyone here tonight had a chance to review the budget or watch the presentation when it was presented at the BOS Meeting. MR: I am basically going to run through the same presentation with all of you. Then I will be happy to answer any questions. February 18, 2020 Page 1 MR: Commented on new growth, and how property taxes are a bit higher than originally projected. Also stated that she met with the Building department, Planning and Assessors Department. MR: About 72% of the Town’s revenue comes from property taxes. The total amount of revenues for the FY21 Budget totals $195,518, 926, a 4.01% increase from last year (not including free cash for reserves and capital). MR: Also stated that operating transfers are decreasing. MR: Spoke of the FY2021 Budget expenditures and stated that the total for FY21 is $111,217,162. MR: Went through and summarized all the charts, slides and graphs from her presentation. MR: Continued with Budget Expenditure Breakdown stating that the Budget includes an increase of 4.07% in department spending from FY20 (excluding reserves). MR: Commented that the Municipality Budget is increasing by $967,952, School Budget increased by $2,291,648 and Support Service increased by $23,000. MR: Spoke on health insurance and how they are spending less on health insurance than they did seven years ago. MR: Commented that DC created a Health Insurance Model that has been very helpful and allows us to take a look at costs. MR: Commented on the excess funds from health insurance and that they are being placed in a finance reserve account, which will allow for greater budget transparency, while we still fund the reserves that we need to operate. This will make a big difference in our budgeting. MR: Spoke on a variety of items such as, Capital Stabilization, Free Cash, Staffing, OPEB, the general fund, job sharing as well as various departments in the Town. MR: Spoke of the introduction of a therapy dog to the Police Department and also the costs involved. MR: Went on to say they are consolidating DPW salaries for payroll efficiencies. MR: Commented that they are increasing funding for cyber security and also spoke of the two software programs that they will be introducing, Cleargov and Flashvote. MR: Spoke of the increase in the operating Budgets for both the Sewer Enterprise Budget (increase $170,059 from FY20) and the Water Enterprise Budget (increase by $358,954). MR: Commented on the hydrant flushing, flow testing and hydraulic model update project (they will do 750 hydrants per year for a total of 1500 hydrants) it a public safety issue but also improves the quality of the water. MR: Moved onto the Stevens Estate Enterprise Budget and commenting that they are decreasing from $496,380 to $360,129. While the budget is decreasing in total, it is not a reduction in service, also speaking of the additions that have been added to Stevens Estate. MR: Stated that we want to be conservative, but if the Stevens Estate does not meet expectations then we will need to do some budget cuts. MR: Wanted to thank the Department Heads and Division Directors for their support and also gave a special thanks to LS and DC. February 18, 2020 Page 2 SW: Invited anyone that had any questions or comments to MR, LS or DC with regards to tonight’s presentation. The Finance Committee asked questions and made comments to MR, LS and DC, regarding the Budget. Health insurance, OPEB, expenses, inflation areas, budgets, Columbia Gas, buying power, grants, smart buildings, energy projects, decreasing costs, Stabilization Fund, schools, new growth in town, revenue, free cash, importance of budget transparencies, etc., these were some of the questions, comments and topics that were discussed and questioned after the presentation. SW and the Finance Committee stated that the presentation was incredibly helpful and thanked all that attended tonight’s meeting. Public Comment Discussion starts on or about 7:45 pm/ 0:45:00 on video time Stan Limpert of 43 Stonecleave Road stated that he only had compliments to all those involved. Also felt positive on the transparency and utilization of money. It is wonderful to see a great leadership team and to have everyone here. This should not be just school focused but also the municipal side should not be left out of the discussion. SW and the Finance Committee thanked everyone for coming tonight. Approval of Minutes January 28, 2020 Discussion starts on or about 7:52 pm/ 00:52:00 on video time CA: Made a motion to approve the minutes for January 28, 2020 TT: Second the motion All were in favor to approve the January 28th, 2020 Minutes 7:55 PM Adjourn 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 February 18, 2020 -Minutes from January 28, 2020 -Capital Improvement Plan General Fund 2021-2025 -Town Manager’s Recommended Budget FY 2021 - FY21 Revenue Fixed Cost Projections - RFCC Worksheet - FY21 Revenue Projection Detail - FY2021 Town Manager Recommended Budget” (dated February 18, 2020) February 18, 2020 Page 3