Loading...
HomeMy WebLinkAboutFCMeetingMinutes_01.12.06 Finance Committee Meeting Minutes January 12, 2006 Attendants: Attendance sheet attached I. Call to Order: Chairman Mitchell called the meeting to order at 6:30 pm. II.Approval of Minutes: Jack Watkins,with a second from Mike Batsimm, made the motion to approve the December 5 minutes, provided in the handout. The motion passed 5-0-0. III. Old Business: A) Ozzy Osgood Properties Update: The Committee discussed the latest information regarding the Rail Station and the existing building. Presently, with the cancellation of the meeting scheduled for Wednesday, January, 11, no one really knows where this project is going. Mike Giarratano stated his belief that an independent Market Study is critical to reviewing this project. Further, he found it curious that Judi Barrett, who performed the Financial Peer Review for the town, thought that the developer had a market study, but did not share it with her and also that no funds are available for a market study. The Committee then discussed whether they wanted to officially appoint members to act as the Committee Liaisons or have all nine members participate. Steve Dawe made a motion to officially appoint two members to be the liaison for the Finance Committee. Jack Watkins seconded the motion. The motion carried with a 9-0-0 vote. After a brief discussion, Steve Dawe made a motion, seconded by Eva Hamori, to appoint Vice Chairman Batsimm and Melinda Coppa as Liaison_ The vote carried 9-0-0. B) Final Report—Revenue/Fixed Costs Review Committee ("RFCRC"): Mark Nichols gave a brief overview of the RFCRC's final report. He discussed the basis supporting some of the estimates used in the final report. In particular, he touched on the New Growth revenues, along with Health Insurance and Pension Expenses. The RFCRC used trending analysis to derive the New Growth estimate; primarily because the reformation used by the Town's Assessor did not appear up to date. Health Insurance projections, described as the"albatross" for the FY07 Budget, show an increase of 25.5% over FY06. This large increase also includes a State Mandate (incurred but not reported)to build up of the Health Insurance Reserve, approximately$450k- $500k in total, applied evenly over the next three years. The Pension expense increased approximately$133k. Mark highlighted New Growth, Lottery and Chapter 70 monies as the areas most likely to change. A brief discussion ensued about potential Healthcare Reform but this will not impact FY07. The RFCRC did suggest the Town open discussions with Merrimack College over possible PILOT payments; which our Senators got fired up over. The Town's Senators also expressed a desire to have the State help fund Capital projects that impact State owned property, such as a Fire Truck. Paul Stewart followed this discussion with a brief overview of his FY07 Budget Shortfall Analysis. Paul applied the RFCRC's data to several scenarios showing possible shortfalls in FY07 service versus FY06, including one scenario showing a $2.7Million shortfall. Steve Dawe noted that Dr. Harutunian has already announced his department's need for$2.9 million to fund level services. IV. New Business: C)Joint Board Meeting (FinCom, Board of Selectmen "BofS", School Committee): Chairman Mitchell took this item out of order. After a brief discussion, the Committee informally agreed to tentatively hold a joint meeting of the three boards on Tuesday, January 31, at 6:30pm. During this discussion, Paul Stewart raised concerns over comments made about the RFCRC's Health Insurance estimate, at the last Board of Selectmen meeting, by Selectman Thomas Licciardello. Specifically,he quoted Selectman Licciardello as saying, "Frankly, we're not, as a Board, I can tell you, we're not convinced that 1.7million is a necessary number." The members had a brief discussion on how such a comment could negatively impact the credibility of the RFCRC's report. More specifically, members questioned whether Mr. Licciardello is privy to information, causing him to publicly display a lack of support for the RFCRC's Health Insurance estimate that the Town did not share with the RFCRC. The Committee agreed to have Chairman Mitchell follow this issue up with Selectman Licciardello and request for support for his comment. A) Proposed FY2007 Capital Improvement Plan ("CIP"): 1) Request for Information: Chairman Mitchell requested a list of questions on the proposed CIP by Tuesday, January 17, 2006. He then gave a brief Finance Committee Meeting Minutes,January 12,2006 Page 2 A) Proposed FY2007 Capital Improvement Plan ("CIP"): 1) Request for Information (Continued): explanation on the Old Center Roadway project. Paul Stewart then expressed his concern that this CIP was missing the larger items expected to have a Prop. 2.5 override. A brief discussion ensued on the Capital Improvement Planning Committee's ("CIPC")role and when a final report is due. It was noted, the School Department has not provided the CIPC with the asset review prepared by an outside Consultant. Jack Watkins expressed concern over the lack of direction the Committee had when he attended a meeting over the summer. Melinda Coppa thought the CIPC's scope of review included all Capital projects and not just the larger ones requiring an override. B Fink clarified that at a meeting, Town Manager Mark Rees directed the Committee to review only those large items. Chairman Mitchell will request an update on the CIPC's progress. Paul Stewart then also expressed interest in the$2.0 million request from the Community Development Department to overhaul Bradstreet School. Steve Dawe offered a brief explanation as he brought this issue up with the School Committee; a mistake made by a new Community Development Director, Curt Bellavance. 2) Department Liaison Review: Chairman Mitchell adjusted the Liaison assignments to include Mark Nichols and then requested each member discuss the CIP requests with each department Liaison. B) "Wish List" Focal Points: Jack Watkins gave a brief overview of his request for Committee member's "wish list". Members discussed the three items, individually, highlighted on the Agenda. Paul Stewart also discussed a desire to see a budget by Department. As an example, Paul noted that the FY06 DPW budget has costs associated with the Youth Center. These costs should not appear under the DPW department but rather the Youth Center. Paul added that other departments, such as Stevens Memorial Library does not appear to have this issue. Chairman Mitchell asked members to think about their individual "wish lists" and get back to him with it. Melinda Coppa added that she would like to see a change in services offered; specifically more recycling and trash limits imposed. D) Calendar Review and Next Meeting: The Committee will meet next Thursday, January 19 at 6:30 to continue the CTP review. Chairman Mitchell also requested the Committee to think about possible changes in �'`he Warrant Book Format and to communicate those proposed changes to Paul Stewart and/or Joyce Bradshaw. V.) New items not on the Agenda: 1) School Committee Meeting Overview: Steve Dawe gave the Committee an update on the School Committee meeting in which Dr. Harutunian presented the"pink sheet"portion of the budget. The School Department will need $2.9 million to provide level services in FY07; included in this estimate are "new" curriculum programs. He also discussed an estimated $580,000 shortfall in the FY06 budget for salaries ($266,000 for long-term disability, Maternity leave and sick bank, as well as $143,000 for staff overlapping) and $450,000 in unanticipated Special Education costs. In total, the School Department has a$1.53 million shortfall in the FY06 budget. This estimate did not take into account approximately$700,000 in Circuit Breaker monies due from the State which would still leave the Department with a shortfall of approximately $800k. 2) BOPS Election: Chairman Mitchell announced two FinCom members pulled papers to run for BofS; Steve Dawe and Paul Stewart. He directed the discussion around the article in the Eagle Tribune which stated members may need to Step Down from the FinCom. Chairman Mitchell noted Rosemary Smedile remaining on the FinCom while seeking election to the BofS. Steve Dawe provided the Committee with a brief overview of his discussions with Charles Salisbury on this issue. Keith noted that pulling papers does not necessarily mean a run for office. On the question of running for Selectman this year while remaining on the FinCom, Paul Stewart said, "I have no intention of doing both." Chairman Mitchell gave both members support for remaining on the FinCom while running for elected office- Steve Dawe will have another discussion with Charles Salisbury and report back to the Committee with any new information. V.Adjournment: Mark Nichols, with a second from Jack Watkins, made the motion to adjourn the meeting at 8:21pm. All members voted in favor of adjourning. Approved Januga 16 2006 Vote 8-0-0 X Melinda Coppa