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HomeMy WebLinkAbout2021-02-16 Finance Committee Minutes Finance Committee Minutes of February 16, 2021 Present: Chairman Sasha Weinreich,Edward MacMillan, Jennifer Burns-Luz, Christine Allen, Kevin Foley,Dustin Silk, Regina Kean, Thomas Ringler,Denevan O'Connell Absent:None Non-Finance Committee Members: Town Manager Melissa Rodrigues,Finance Director Lyric Savage Ms. Weinreich read a quick statement before the meeting started"Pursuant to Governor Baker's March 12, 2020 Order Suspending Certain Provisions of the Open Meeting Law, G.L.c 30A, Section 18 and the Governor's March 15,2020 Order imposing strict limitation on the number of people that may gather in one place, this meeting of the North Andover Finance Committee will be conducted via remote participation to the greatest extent possible." Ms. Weinreich called the meeting to order at 7:05PM via conference call. Ms. Weinreich did a roll call. Ms. Weinreich led the Pledge of Allegiance. Public Comment No public comment. Town Manager's FY22 Recommended Budget Ms.Rodrigues presented the FY22 Recommended Budget. Ms.Rodrigues highlighted the following: Revenues -Revenues for the FY22 budget total$108,279,212, a 2.35%increase from last fiscal year -Property taxes are estimated to grow by 3.61% -Local receipts are decreasing by 3.55% -Local aid,per our policies and procedures,is level funded except for a small increase in unrestricted aid FY22 budget expenditure breakdown -The FY22 budget includes increases of 2.35%into departmental spending from FY21 -General funding spending,including reserves,is increasing by a total 2.3% -Municipal budget is increasing by$147,483 -School budget is increasing by$1,531,699 -Support services is decreasing by$66,109 Cares act update -Cares act funding spending deadlines were extended,however,no additional appropriations of funding -Town has spent all of their available funding -COV1D-19 costs continue and we anticipate as much as $1.5 million in additional costs through June 30 -Committed to COVID-19 funding for FY22 as well with an appropriation from free cash at town meeting -Anticipated$2.6 million for NAPS (COV1D necessities as well as bridging education gap) equals 7.49%total increase over FY21 -$110,000 for public health -Free cash is an appropriate funding source for COVID-19 expenses because it is the use of a one-time funding source for one time expenditures(nonrecurring costs)no increase to base budget because not an increase to the levy -Use of free cash(or any other one-time revenue source)for reoccurring expenses creates a structural deficit Highlights and changes -Moved postage to one budget for efficiency purposes -Second year of Finance Committee Reserve funded at$1.5 million -Employee reduction: - .2 Community Development Office - 1 FTE Town Clerk's office -Moved Community Support Coordinator to Police Department -Salary reserves for unsettled Collective Bargaining Agreements -COLA at 1.5% Ms.Weinreich asked Ms.Rodrigues what is being estimated for the internal budget capacity. Ms.Rodrigues stated she did not know due to snow and ice budget and there will most likely be a deficit in spending due to an upcoming storm. Ms.Kean asked about the School's COVID-19 expenses. Ms.Rodrigues explained the School has received grants that will offset their expenses. Ms.Kean asked what was normal for Free Cash before Colombia Gas incident happened. Ms.Rodrigues stated Amazon and Colombia Gas created an anomaly for Free Cash since 2018. Ms. Weinreich asked Ms.Rodrigues if Stevens Estate can be taken out of Enterprise Fund. Ms.Rodrigues stated the Division of Local Services reviewed the Enterprise Fund and the report will be in later in the week. Ms.Rodrigues stated two paths were suggested, (1)to lease, (2)to put out to Town Meeting to make it a General Fund. Mr. O'Connell asked if any savings had been realized due to COVID-19. Ms.Rodrigues asked Ms. Savage if there were any large savings. Ms. Savage stated no large savings but more efficiencies. Mr.Foley asked when the collective bargaining will be wrapped up. Ms.Rodrigues stated the DPW will be finished on Monday but Police and Fire have just started. Mr.Foley asked if the Superintendent was engaged in the collective bargaining with the teachers. Ms. Savage stated yes. Mr.Foley asked about the dates referred to with the 4-month budget. Ms.Rodrigues stated July 2021-October 2021. Ms.Luz asked about the anticipated costs of the $1.5 million. Ms.Rodrigues stated$100,000 is for the Town and the rest are for the School salary costs. Ms.Luz asked,in regard to the 4.5%increase for school needs,what the plan is to engage people to get the conversations started. Ms.Rodrigues stated there is a large public process after the schematics are received and a website will be created to educate and inform everyone about the Facilities Master Plan I1. Old Business Ms. Weinreich stated the Revenue and Cost Committee met and Ms. Weinreich and Mr. O'Connell brought back information and made recommendations that were given to Ms. Rodrigues. Ms. Weinreich stated the Trustees of Osgood Hill reached out to speak at a Finance Committee meeting. Ms. Weinreich stated it has been decided to wait on having them to a meeting until a later date. Approval of January 26,2021 Minutes MOTION:Ms. Allen motioned to approve minutes ofJanuary 26, 2021. Mr O'Connell seconded. Roll Call- MacMillan-yes, Allen-yes, Ringler-yes, Luz-yes, Foley-yes, O'Connell-yes, Kean-yes, Silk-yes, Weinreich-yes. Motion approved 9-0. Adjournment MOTION:Mr: O'Connell made a motion to adjourn at 7:53PM, seconded by Ms.Allen. Roll Call-MacMillan-yes, Allen-yes, Ringler-yes, Luz-yes, Foley-yes, O'Connell-yes, Kean-yes, Silk-yes, Weinreich-yes. Motion approved 9-0. Respectfully submitted, Jillian A. Brothers Executive Assistant