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HomeMy WebLinkAbout2024-11-12 Finance Committee Minutes qi t w Finance mill,tt. rr -` Pc e (rlj u „, Present: Chair Denevan O'Connell, Vice Chair Christine Allen, Brianna Stetson, Keith Chaney, Regina Kean, and Nancy S arro Not Present: Eva Pastor and Dustin Silk Present Non-Member: Interim Superintendent of North Andover Public Schools Pamela Lathrop and Finance Director Dennis Keohane. Mr. O'Connell called the meeting to order at 7:05pm. The open session meeting took place in the School Admin Room at the School Administration Building on 566 Main Street. PUBLIC COMMENT None. ELECTION OF CHAIR AND VICE CHAIR MOTION:Ms. Kean made a MOTION, seconded by Ms. Allen electing Denevan O'Connell as the Chair of the Committee. Motion approved 6-0. MOTION:Ms. Kean made a MOTION, seconded by Mr. O'Connell electing Christine Allen as the Vice Char of the Committee. Motion approved 6-0. Out of order: UPDATE ON SCHOOLS—PAMELA LATHROP, INTERIM SUPERINDENDENT OF NORTH ANDOVER PUBLIC SCHOOLS Interim Superintendent Pamela Lathrop and Finance Director Dennis Keohane were present. Mr. O'Connell stated the Town Manager sent an update on October 24, 2024. Mr. O'Connell stated in the Town Manager's memo as of October 14, 2024 the district's current deficit was $451,877.76 with the potential shortfall of$2.5 to $3.5 million for the fiscal year after considering the unencumbered expenses. Ms. Lathrop stated one of the challenging as well as confusing things was that they were giving budget updates at every School Committee meeting before they had their first payroll and first billing cycle. Ms. Lathrop stated at the last budget update they projected a deficit. Ms. Lathrop stated this occurred due to budget salaries and an error on their part. Ms. Lathrop stated they now have accurate billing. Ms. Lathrop mentioned they have listed items that have not been covered in this budget yet that they anticipate spending but are working with the Town Manager and Town Finance Department. Ms. Lathrop stated the good news is the numbers are matching but the bad news is the numbers are what the numbers are. Ms. Lathrop stated the deficit is largely due to the fact they are running the same way as they have in the past. Ms. Lathrop stated through the volunteer separation program, they were qi t w Finance mill,tt: rr - Pc Ntvv e o (rlj u „g , able to account for the extra teaching assistants that were not accounted for before. Ms. Lathrop stated it was not really a savings,just more of a way to be able to handle that situation. Ms. Lathrop stated the goal is to come in with a balanced FY26 budget. Ms. Lathrop stated she has met with the principal leadership team, and they are looking at ways to reduce the budget currently. Ms. Lathrop stated it is tricky; looking at things that can be cut, what the impact would be due to that cut, the dollar amount, and whether the dollar amount outweighs the impact. Ms. Lathrop stated they do have a soft freeze on their budget right now and are not spending on extras. Ms. Lathrop stated the tricky areas are extra hours and continuing substitution cost. Ms. Allen asked do you feel like you uncovered all of the surprises. Ms. Lathrop stated they know what they are spending but still have areas that can be surprises to them. Mr. O'Connell asked how the search for a new School Finance Director is going. Ms. Lathrop stated not well; it is challenging because the position became available after the school year had started. Ms. Allen asked what is the number that is needed to run the schools. Ms. Lathrop stated the School Committee needs to see a budget of what the levels of services truly looks like and what it costs while also looking at some other things the district might need and what they cost. Ms. Lathrop stated they are looking at their programing to ensure they are offering as many district programs as they can. Ms. Lathrop stated they did raise the preschool tuition. Mr. Chaney asked if Ms. Lathrop could tell them a little bit more about what they do operationally. Ms. Lathrop stated they are committed to using their MUNIS system. Ms. Lathrop stated they have asked principals to sign off on extra hours and the use of substitutes. Ms. Lathrop stated operationally, they have separated extra hours needed within the school outside of extra hours for special education to get a sense of how much money they really need to support special education. Ms. Lathrop stated Greg Landry is now the Director of Personnel and Operations. Ms. Lathrop stated internally they have tried not to fill open positions. Ms. Lathrop stated a budget update is now given to the School Committee after payroll to provide a more accurate budget. Mr. Chaney provided a few suggestions on how to save money. Ms. Lathrop stated she has a leadership team in the Central Office that meets every Friday. Ms. Lathrop stated she asked each principal to cut their budget by 10%. Mr. Chaney asked how can we bring in funds without disrupting the operations. Ms. Lathrop stated creative ways to bring in funds are through policies that the School Committee needs to have. Ms. Sarro asked what is driving the fact that there is a $1 million spread for the projected deficit. Ms. Lathrop stated the unknown is the out-of-district cost. Ms. Lathrop stated they are continuing to look at transportation costs. Ms. Lathrop stated it is also the overtime costs for custodians, teacher assistance, and extra hours. Ms. Sarro asked why the error in salary affects the budget if the budget was determined prior to September. Ms. Lathrop stated she does not believe the budget was correct when it was developed. Ms. Sarro asked if the state provides any money to special education. Ms. Lathrop stated they do receive state aid. Ms. Sarro asked what qi t w Finance mill,tt. rr -` Pc e (rlj u „, Medicaid was. Ms. Lathrop stated certain people can count their hours and the town is reimbursed by Medicaid; the town then allocates the money back to the schools. Ms. Kean asked what the $750,000 was. Mr. Keohane stated it is ARPA funding directed by the Select Board. Ms. Kean asked what the additional salaries under not encumbered are. Ms. Lathrop stated it could be any position that they have not filled yet that may be an open fit. Mr. Keohane stated the approved budget was not enough for what was committed to spend this year. Mr. O'Connell advised Ms. Lathrop to continue to be transparent. SELECTION OF MEMBERS FOR THE REVENUE FIXED COST COMMITTEE Mr. O'Connell went over the role in the Revenue Fixed Cost Committee. Ms. Sarro volunteered to continue as a member, and Mr. O'Connell volunteered to fill the open position for the committee. ADJOURNMENT MOTION:Mr. Chaney made a MOTION, seconded by Ms. Allen to adjourn the Finance Committee meeting at 7:52pm. Motion approved 6-0. Respectfully submitted. Nicole Civitarese Executive Assistant Documents used at meeting School Presentation of FY25 Budget Deficit Town Manager's Memo