HomeMy WebLinkAboutFCMeetingMinutes_12.13.10
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TOWN OF NORTH ANDOVER
FINANCE COMMITTEE
Meeting Minutes
Meeting Date:010
23 December 2
Meeting Location: Town Hall, First Floor Meeting called to order: 7:00 PM
Conference Room
Mark Rodgers-MR, Chairman Thom Dugan-TD
X X
Ramsey Bahrawy -RB, Vice Robert Norbedo-RN
Chairman
Ben Osgood-BO Matthew Remis-MRem
X X
Alan LeBovidge-AL Herb Cunha-HC, Minutes
X
Peter Besen-PB Pat Sifferlen, PS, Admin
X
Bonnie Wilkinson-BW
X
Non FinCom Members in Attendance
OTHERS: -Mark Rees, MRees, Town Manager
-Stan Limpert, SL-Ch.School Committee
Note: All FINCOM votes are subject to change upon receipt of new information.
Note: Documents used in this meeting are listed in Document Table, herein.
II. Previous Minutes Approved
DATE: 16 Nov 2010 Minutes approved, unanimous
17 Nov 2010 Minutes approved, unanimous
III. New Business
AGENDA ITEM: A. School TeachersÔ Contract costs (Mark Rees)
Discussion: -MRees: He referred to the 2 Year agreement which he stated he votes, yes.
He next referred to the 3 Year agreement and stated that he voted against this new
contract for reasons of inadequate funding. He referred to his spreadsheet which
shows a shortfall in 2012. Also he indicated difficulty to compensate School contracts
steps 9-10, where on the municipal side there are 3 steps.
-MR: He mentioned that our financial model we show 1% maximum as being
affordable as allowed for overall increases, otherwise layoffs would be necessary to
make increases affordable.
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AGENDA ITEM: B.Revenue and Fixed Cost Committee update (Thom/Bob)
Discussion: -TD: He reported difficulty in having meetings. He expects financial difficulty next
th
year. He questions 2% revenues. December 27 is when RFCC report is due. The next
th
meeting is planned for December 29.
-SL: He asked about GIC.
-MRees: Discussion continued about GIC versus the North Andover Plan, which is
different for GIC versus Blue Cross.
-TD: His thought is that we may have to consider GIC.
-MR: We havenÔt, nor have neighboring towns, had layoffs.
AGENDA ITEM: C. Capital Improvement Plan (CIP) presentation (Mark Rees)
Discussion: MRees: The CIP plan addresses the General Fund for CIP, and doesnÔt include Water
and Sewer. He asked Municipal Departments to list projects by their priority, etc. He
then evaluates based upon following criteria-Finances, Legal (whether a mandate),
Service to Community, Phased projects, and Department Priority. He then establishes a
priority list of his own. Department services 5-6% (vs 3-5%). In his report he tries to
enhance, $562k road improvement. FY12, $3.5M Capital Projects (note pg 4 of his
plan). Possibly $100k based upon $368k from the old project list. Need to borrow
$2.183k. Water and Sewer CIPs will follow in a separate report.
On page 3 of this CIP Plan, following data was discussed:
Year: 2009 2010 2011 2012 2013 2014
Debt Ratio: 5.33 4.64 4.85 5.22 5.63 5.03
-MR: He referred to FINCOM at the Town Meeting, that there was some commitment
up to debt 10%, another said to have none.
-SL: What is the impact to our bond rating?
-MRees: Demographics look at community affluence, wealth, some up to 10% and
consistency of management.
-PB: Raised question about debt service.
Note: BOS says 3-5%
-MRees: He will ask boards to meet and discuss. General Fund, close out list of those
to close, $368,426.
AGENDA ITEM: D. New Business
Discussion: No new items.
IV. Next Meetings
6 Jan 2011 1st Floor Conference Room, Town Hall 6:30 PM
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V. Adjournment-
Motion: BW Yes Unanimous
Seconded: PB Time: 8:06 PM
DOCUMENTS PROVIDED AT MEETING
TYPE FROM TOSUBJECTCOMMENTS
ITEM #
1 Memo Town of N. General Teamster Local Union 25 vs Town of
Reading N. Reading
2 CIP Plan NA Town Mgr GeneralCapital Improvement Plan General
Fund 2012-2016 Town Manager
Recommendation
3 Annual Budget NA Town Mgr General Annual Budget spreadsheet through
spreadsheet 2016 projected, Municipal Unions,
Base Salary Increases
ACTION ITEMS C=Complete
ITEM # ACTION ITEM INDIVID.COMPL. STATUS
DATE
1-28 Completed items are shown in FINCOM Mtg C
Minutes of 4 Mar 2010 thru 28 Oct 2010 for review.
29 Form FINCOM Sub-Committee to prepare Articles MR16 Nov
for the Warrant.
30 Obtain copy of Osgood Landing sewer Budget from MR24 Sep
Lenny Degman, Asst to Mayor of Lawrence.
31 To invite the Chairs of the Planning and Conservation MR24 SepC
Boards to a FINCOM meeting to discuss
Construction Project Bonds.
32 Provide CD for New FINCOM member handbook.MR16 Nov
33 Put on the Agenda, Minority Report and the MR16 Nov
formation of a FINCOM Article Sub-Committee.
34 Revise Article 1, edit to show borrowed fundsAL16 Nov
35 For Article 3, check with Lynn Savage about accuracy PB16 Nov
of the $525k.
36 Revise Article 5.BW16 Nov
37 Revise Article 7.RB16 Nov
38 Send 9 page PDF file on Amnesty.MR16 Nov
39 Ask Mark Rees regarding law to pass something that MR16 Nov
only affects 1 person in the Town.
40 . BO16 Nov
Revise Article 8
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