Loading...
HomeMy WebLinkAbout2025-12-08 Finance Committee Minutes di Finance Committee Meeting Minutes of December 8, 2025 I IIIIiY)loll`ii�Ei@tl} �}pIt 1}i'I}y, (IIII II Illt'lll�ll I i ,i Call To Order: Chair Regina Kean called the meeting to order at 7:OOPM. The open session meeting took place in the Select Board Meeting Room at the North Andover Town Hall on 120 Main Street. Present: Chair Regina Kean, Vice Chair Denevan O'Connell, Jeanne Irwin, Nancy Sarro, Keith Chaney, Eva Pastor and Jennifer Watson. Not Present: Christine Allen and Dustin Silk. Non-Board Members in Attendance: Finance Director Dennis Keohane. PUBLIC COMMENT None. NEW BUSINESS Update from the Revenue and Fixed Cost Committee Dennis Keohane was present. Mr. Keohane discussed the results of the meeting. Mr. Keohane stated the committee recommended $143,784,000 roughly a 4.7% increase over last year for the projected revenues. Mr. Keohane stated they recommended $34.14 million roughly 8% over the prior year for the projected fixed costs. Mr. Keohane stated this will translate to a budget increase roughly in the 4% range. Mr. O'Connell asked if they heard back from the Department of Revenue on the tax rate. Mr. Keohane stated yes, the tax rate has been approved. Ms. Kean asked if Mr. Keohane could speak about the split the Select Board voted on. Mr. Keohane stated it is consistent with the percentage that it has been for the previous three years. Ms. Kean asked if Mr. Keohane could explain what the split is. Mr. Keohane explained what a split tax rate and a single tax rate is. Mr. Keohane explained the vote of the shift which is to transfer some of the burden away from residential towards industrial and commercial. Ms. Watson asked if the shift value resulted in a very different shift in percentage of the tax burden to residential versus commercial and industrial. Mr. Keohane stated yes, there will be a smaller increase in residential tax bills and a larger increase in commercial and industrial bills and personal property. Ms. Watson asked if the tax increase this year with this shift is the smallest they have seen in some time in regard to the residential side. Mr. Keohane stated yes. Ms. Irwin asked if that came into play with the inventory at Amazon. Mr. Keohane stated they had more growth than they anticipated due to personal property, Amazon, and other factors which contributed to a larger increase in revenue. Mr. Keohane discussed the average growth percentage each year. Ms. Kean asked if it was the value of inventory or the equipment. Mr. Keohane stated the Amazon facility personal property. Ms. Kean asked if this was because the facility was not at capacity or they did not have the proper estimating model. Mr. Keohane stated it may not have been fully utilized the year before or it may have been the time of reporting, but he cannot really answer that question. Mr. Chaney asked if Mr. Keohane could speak to Amazon being in front of the state right now. Mr. Keohane discussed why Amazon was currently in front of the appellate tax board. Mr. O'Connell asked if it was the North Andover Amazon facility or all Massachusetts Amazon facilities. Mr. Keohane stated he cannot speak to any of the other parcels. Ms. Kean asked who does the valuation of their property. Mr. Keohane stated the Town. Mr. Keohane discussed what could happen at the appellate tax board. Mr. Chaney asked if there would be some room for Amazon to argue for a lower valuation due to the Town not being experts on all the equipment or value of the equipment. Mr. Keohane stated the personal property piece is self-reported, and the real estate side is assessed by the Town. Mr. Keohane di Finance Committee Meeting Minutes of December 8, 2025 I IIIIiY)loll`ii�Ei@tl} �}pIt 1}i'I}y, (IIII II Illt'lll�ll I i ,i stated the Town does not assess the value of inventory. Ms. Kean asked why they were appealing it. Mr. Keohane stated the appellate tax board case is related to the real estate valuation. Mr. Chaney stated he thought the Town did assess and look at the equipment inside of the facilities. Mr. Keohane stated the Town will assess the building but not the personal property. Mr. Keohane stated if something is part of the building, it will be valued as part of the building. Ms. Sarro asked if that was a cost basis and not value basis. Mr. Keohane stated yes. Mr. Keohane stated they do assess for personal property and real estate, but they assess that based on the value whether it is self-reported or determined by the Town. Mr. Keohane discussed what would happen if the appellate tax board ruled in favor of Amazon. Ms. Kean asked why the tax capacity would stay there if the appellate tax board ruled in favor. Mr. Keohane explained the calculation. Ms. Watson asked if that does go down, does the tax that would be paid on that valuation get redistributed on the commercial and industrial side or across the entire Town. Mr. Keohane stated it depends on the shift. Ms. Sarro asked if changes in the TIF impact the 4.7%. Mr. Keohane stated the TIF goes down every two years, and it will not change the revenue number. Ms. Irwin asked if each Amazon facility was a different LLC. Mr. Keohane stated he cannot speak for the whole company, but he does know that the distribution facility in North Andover is its own entity as an LLC. Other Business Ms. Kean asked if everyone received the School Committee monthly update. Ms. Kean discussed what was covered in the update. APPROVAL OF MINUTES FROM OCTOBER 14, 2025 MOTION: Mr. O'Connell motioned to approve the Open Session minutes of October 14, 2025 as presented. Ms. Watson seconded. Motion approved 7-0. ADJOURNMENT MOTION:Mr. O'Connell made a MOTION, seconded by Ms. Irwin to adjourn the Finance Committee meeting at 7:31 PM. Motion approved 7-0. Respectfully submitted. Nicole Civitarese Executive Assistant Documents used at meetina Minutes from 10/14/25