HomeMy WebLinkAboutFCMeetingMinutes_02.04.14
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TOWN OF NORTH ANDOVER
FINANCE COMMITTEE
Meeting Minutes
Meeting Date February 4, 2014
st
Meeting Location: Town Hall 1 FL Meeting Room Meeting called to order: 6:45
Alan LeBovidge AL, Chairman Susan Almono SA
X X
Marta Solof MS Timothy Tschirhart TT
X X
Karin Blake KB Matthew Remis-MRem
X X
Dan Leary -DL
X
Bill Callahan BC Pat Sifferlen, PS, Admin
X X
Donald Elliot DE
X
Non FinCom Members in Attendance
OTHERS: Jim Mealey, Stan Limpert, Lyne Savage , Ray Santili Andrew Maylor
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
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AGENDA ITEM A: CIP DISCUSSION AND VOTE
AL: We need to vote on each item separately. Is there any discussion on item?
SA In regards to Road Improvement have we considered using recycled asphalt?
AM Sometimes we do it depends on the conditions.
DL would like a brief background on the Thrift Shop
AM Thrift shop had an agreement with town to get more space. A proposal was made
several years ago adds to existing facility. This will satisfy agreement with that town made to
them. CPA funds will cover maintenance
Vote
Count
General Fund Proposed Action 2nd Y N
amount
Roadway Improvements $
Favorable Action 8 0
1 840,000
Sidewalk Reconstruction $
Favorable Action 8 0
2 75,000
Franklin School Drainage Repair $
underground Tank Removal 73,500
Favorable Action 8 0
3
Facilities Master Plan
Implementation 6,377,767
Favorable Action 8 0
4
Municipal IT $
Favorable Action 8 0
5 50,000
Building Maintenance $
Favorable Action 9 0
6 150,000
School IT $
Favorable Action 9 0
7 106,422
District Wide Paving $
Favorable Action 9 0
8 152,401
Equipment 6 Wheel Dump Truck $
Favorable Action 9 0
9 160,000
Installation of Fiber Optics $
Favorable Action 9 0
10 57,000
Water & High Street light ,intersection, Road, $
Streetscape improvement
Favorable Action 9 0
11 650,000
Carpet Replacement (district Wide) $
Favorable Action 9 0
12 149,263
Addition to 170 Sutton Street (Thrift Shop) $
Favorable Action 9 0
13 150,000
8,991,353
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AGENDA ITEM B Financial Reserve Policies and vote
AM discusses the Draft Financial Reserve Policies. Reserves should normally average 5% to 15% of the
Two types of reserves 1) restricted reserves for a designated purpose 2)
unrestricted reserve which can be used at the discretion of the authorized personal.
Operating Reserves provide for unexpected revenue losses during the year. Falls into 2
categories 1) Undesignated Fund Balance shall be maintained to sufficient levels to absorb
unpredictable revenue shortfalls and to insure desired cash flow levels 2) Free cash this reserve
provides for the temporary financing of unforeseen opportunities or needs of an emergency fund
Stabilization Fund s total General Fund. Stabilization fund
can only be used under certain circumstances. 1) to support the operating budget when general
fund net revenue increases less than 2.5%from the prior fiscal year and 2) to fund capital
projects, on a pay as you go basis when available free cash drops below 2 million .
Capital Stabilization Fund the target funding level shall be an amount equivalent to 1% of the
the amount would be
840K, Fund can only be used on projects which have
Other Post Retirement Benefits (OPEB) The TFL shall be equivalent to 5% of the unfunded
actuarial liability (currently at 100 Million) 1 % from the towns Health insurance trust fund will
be transferred (1 million).
Overlay Reserve The overlay is used as a reserve under the direction of the Board of Assessors
to fund property tax exemptions and abatements.
Enterprise Fund Retained Earning Reserve provides rate stability in the water and sewer
enterprise funds. Would like to establish a minimum of 3 months reserves.
Motion made to accept the Financial Reserve Polices presented tonight.
YES 9
No 0
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IV. Next Meetings
February 25, 2014
V. Adjournment-
Motion: DE Unanimous
Seconded: MR Time: 8:00
TYPE FROM TO SUBJECT COMMENTS
ITEM #
1 Draft Financial Andrew Maylor Finom
Reserve Policy
2
3
5
6