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HomeMy WebLinkAboutFCMeetingMinutes_03.27.03 APPROVED FINANCE COMMITTEE MINUTES March 27,2003 ATTENDANCE: The following members were present: Jack Watkins, Chairman, Bernice Fink, Vice Chairman, Paul Stewart, Keith Mitchell, Mark Nichols, Melinda Coppa, Paula Porten, Steve Dawe and Mike Batsimm. Also present were Mark Rees, Town Manager, Rosemary Smedile, Chairman of the Board of Selectmen, Wendy Wakeman and Mark Caggiano, Board of Selectmen,Bill Allen,Superintendent of Schools,school personnel and residents. CALL TO ORDER: Jack Watkins,Chairman,called the meeting to order at 7:02 pm. APPROVAL OF THE MINUTES: No comments were made on the Minutes of March 13. Keith MOVED and Melinda seconded to approve the Minutes as written. The vote was unanimous. The FinCom delayed approval of the Minutes of March 20 until the next meeting. OPEN FORUM—PUBLIC MEETING Please see attached. FUTURE MEETINGS The next Finance Committee Meeting is Thursday,April 3 at 7:00 pm at the Senior Center. ADJOURNMENT At 9:10 pm,Keith MOVED and Paula seconded to adjourn the meeting. The vote was unanimous. OPEN FORUM—PUBLIC HEARING Thursday,March 27 2003 After each member of the Finance Committee made a brief introduction to the attendees, Jack described the budget process in detail. He distributed the Recommended Operating Budget and the Key Budget Items list. He emphasized that the budget is stili a work in progress due partly because the Governor's budget is still in draft form. Jack then opened up the meeting to the attendees stating that where possible,the FinCom will answer questions and/or take comments under advisement. Resident Bill Sullivan asked the FinCom for comparison budget information to create a benchmark to see where North Andover stands compared to other communities. Paul Stewart said there were some benchmarks in the back of the School Budget Book, which is available on the School Department website. Mark Rees said he did not have the numbers with him, but the following department budgets were compared to other community budgets. North Andover's Fire Department is above average,Police Department is average, School Department is slightly below average and the Public Works budget is one of the lowest in the state (1 percentile). Steve Dawe noted that the North Andover's projected tax bill is 40'n in the state. Dr.Allen said that per pupil spending in North Andover is$1,000 below average. Jack added that the state formula is unfavorable for the Town. "B" said that the Town is in the bottom 10 of all MA communities in per pupil state aid contributions. A resident said that if trash costs were controlled, more money could be spent on schools. Mark Rees said the NESWC contract will be renegotiated for lower fees in FY05. Peter Besen of Candlestick Road asked about the high cost of health insurance. Mark Rees noted that the Town costs are higher than private sector costs for many reasons,but mainly because any changes to the insurance plan must meet approval of all the Town's sixteen unions. The Town is looking into better rates by possibly joining a Iarge group of other MA communities. MMA is working with municipalities on this prospect. Mark Rees ended by stating that the Town is continuously working on long-term strategies. Diane Huster voiced her concern about the cuts to the School Budget noting that the FinCom has considered restoration of some municipal budget items but not school budget items. A discussion ensued on the prospect of losing accreditation due to the major cuts in the budget. Many residents stated that they moved to North Andover because of the excellent school system. Paula Porten noted that all communities are suffering due to the Governor's budget cuts and the economy. She added that the North Andover School budget is 66%of the total Town budget. Melinda Coppa said that the Board of Selectmen and School Committee are still working on the budget and weighing everything carefully. She is hoping that some savings can be made to prevent severe cuts to the School Budget. Diane Stevens, resident, asked what the Town is doing to increase revenues. Mark Rees noted that community and industrial development is a long process that must have Town Meeting approval. He noted there are two proposals to rezone land for development; the ice rink near Sharpner's Pond and a high scale retail development located on Route 114. These businesses will probably not impact revenue's for FY04. He also stated that the Town has worked with housing developers to bring in housing that does not necessarily market to people with children. flans are in effect to revitalize the downtown area, which may also increase revenues. Mark Rees said that Town fees have risen to generate more revenues. Brenda Reid, resident, asked why an override of Proposition 2 '/2 wasn't considered to help balance the FY04 budget. Jack responded that last year's override was defeated. Steve Dawe noted it is an option,but since 1986 there have been 35 overrides with nine passing. Jack then asked the group where they wanted to make cuts to fund the schools. A resident said trash because many communities charge for trash removal. This would reduce the amount of trash the Town sends to the trash plant, and therefore save on tipping fee costs. Dave Sharpe, resident, noted that the School Department was one line item in the Town's Recommended Budget. He asked about the SPED portion of the budget. He then asked for more detail on this line item to get a better understanding about school spending. "B" said she is currently working on the Warrant write-up for the schools, and offered to provide a breakdown if he provides the method that he would like it broken down. Mark Rees was asked about the proposed lay-offs. He noted that with lay-offs, the health insurance goes down but unemployment costs go up. He added that there is a deficit in health insurance for FY03. The trend is that the premiums will increase dramatically within the next few years. Jack thanked all for participating in this Public Hearing. He added that the budget could change within the next five weeks; therefore,if anyone has further questions the Finance Committee members are accessible by telephone.