HomeMy WebLinkAboutFCMeetingMinutes_01.07.14 1
i yea ti,�z s, TOWN OF NORTH ANDOVER.
FINANCE COMMITTEE
Meeting Minutes
Meeting Date January 7 2014
Meeting Location: Town Hall V FL Meeting Room Meeting called to order: 6,30
Alan LeBovidge AL, Chairrnan X Susan Almono SA x
Marta Solof MS X Timothy Tschischart TT x
Darin Blake IAB x Matthew Rcmis-MRem
Dan Leary--DL
Bill Callahan BC Pat Sifferlen,PS,Admin x
Donald Elliot DE X
Non FinCom Members in Attendance
OTHERS: Lyne Savage Andrew Maylor Jim Mealey Ray Santilh
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.
U. Previous Minutes Approved
DATE
2
AGENDA ITEM A Review and Discuss CIP
Discussion: AL would like to discuss 2 things
1) CIP Report
2) OPEB reserve fund proposal
AM 2010 Town Meeting approved to create an OPEB fund to offset the anticipated cost of OPEB
for retired employees. 25K was requested to fund but FinCom declined No funds have
been placed in account. Many people have questions about what we are going to do.
Don't know when will go on balance sheet right now it is a footnote. Has not affected our
bond rating. Money can never come out of this account.
Proposal (sheet 1) to open a stabilization fund to put funds in. not a fund Selectman can go
and use needs a 2/3 vote g Town Meeting. Eliminate old OPEB fund.
1% of the Town's health insurance fund (as of now 3.3 million in funds minus runoffs)
shall be transferred to the OPEB fund.And annually 2.5% shall be appropriated from the
operating budget or Free Crash.
TT: Do you know how 3 million will be carved out?
AM: This is not an operating fund solely used for health insurance.
AM: 2015-2019 CIP Plan continues the practice of reducing debt service to below 5%. C1P
for FY 15 has the lowest percentage of debt service at 4.13% Will continue the practice
begun 2 years ago to increase the pay as you go funding for capital projects. Vehicles with a
cost of less than 50 K will be included in the budgets of the departments requesting,.
Two items have changed from last year's plan, .the school department request this year of
removal of underground tank at Franklin also, 150K for the addition to the Thrift Shop.
Priorities have changed but dollar amount has stayed the same
AM discussed new fire station, town has hired OPM and architect (Donovan and Sweeney).
SA: When will we decide on site of Fire Station?
AM: That has already been determined. (Osgood and Prescott)
SA; Has there been studies done about noise issues?What happened with site at Airport?
JM School Committee and high school administration have said it far enough removed from
classrooms that noise will not be a problem.
AM: No study has been done sound can be controlled and activity is roughly around 5/6
times a day. We do not own land at airport would be in land court for many years.
Al.,read letter from Dan Leary with 4 questions.
1. What happened to the two school sprinkler projects?
One project is still there. They continue to get pushed back Franklin and Atkinson not
done. Kittredge got done because of the addition of modular classrooms,
2. Why did carpet replacement project fund in half?
Steve Foster got detailed quotes that are the dollar amount you see now.
3. Thrift shop?
Thrift shop request appeared many years ago. This request calls for a small 386 square foot
addition to building CPA has also approved money(1301,'-) to make maintenance level
improvements,. This represents a commitment made by the town to them 12-13 years ago.
4. More background on the Franklin repair and tank removal?
Old oil tank needs to be removed along with pavement work that needs to be done, so
looking to do both together.
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DE: question on Fater Treatment plant pg 125?
AM Bryce would need to answer that.
IAB In regards to deka service revenue ratio page 3. What is the rate of increase per year?
AM 2.5% is the rate. The tax levy will only rise by 1.75% during the next fiscal year
primarily because of how we deal with the health insurance, Initial savings from the health
insurance change close to 7 figures we should find a way to do the things with those dollars.
Residence have funded health insurance they should benefit from the: savings therefore the
decrease in the levy. And second fund full day kindergarten after the first year of out of
pocket the second years the state will be fund because currently they don't fund because they
are half day.
Budget also calls for an increase in reserves accounts. Budget will also not increase water
and sewer rates .Also going to have 3 month of operating reserve without increasing rates.
IV, Next Meetings
January 14, 2014
V. Adjournment-
Motion: DE Unanimous
Seconded: TT Time: 8:45
TYPE FROM TO SUBJECT COMMENTS
ITEM#
1 Draft JPEB Andrew Ma lox Fincom
2 CCP Plan Andrew Maylor Fincom
3 Letter Llan.Lcai, Fincom
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