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HomeMy WebLinkAboutFCMeetingMinutes_06.22.06 Finance Committee ("FinCom") Meeting Minutes June 22,2006 Attendance: Steve Dawe was the only member not in attendance. Town Manager Mark Rees, Town Moderator rrles Salisbury and Citizen"B"Fink were also in attendance. I. Call to Order: Chairman Keith Mitchell ("CM") called the meeting to order at 6:30pm. II.Minutes of Last Meeting—,lune 5, 2006: Paul Stewart made a motion to approve the minutes, corrected for a date error. Mark Nichols seconded the motion and the motion carried unanimously. 111. Old Business: A. New Member Appointment: CM gave the floor to Town Moderator Charles Salisbury("CS"). CS thanked the members for the work done this past year. In addition, CS took a brief moment to clear the air on his taking the floor at Annual Town Meeting and to mention he holds no grudges. Then CS gave a brief overview for his reasoning and the process taken to keep the existing FinCom together through the July 10, Special Town Meeting. The only member not to return is Jack Watkins; Ellis Fitzpatrick will fill this vacant seat. Ellis was not able to attend the meeting due to a family medical issue. CS did give an overview to his past experience working with the Department of Revenue, Bureau of Accounts and how this experience could help North Andover. B. Town Manager Update &Request: Town Manager Mark Rees ("MR")then took over the discussions regarding the request to spend more than 1/12"'of the annual appropriations (Town Charter: Section 8: Limit on Spending; 9-8-1). MR explained the requests from Community Development, Police and Fire Departments. Both the Police and Fire Department requests deal with purchasing supplies for FY07 using FY06 monies in order to have fiends available in the FY07 budget to pay for retroactive payments on potential Labor Union Contracts. The Patrol Officers and Sergeants have not had a contract since FY05; while the Fire Firefighters have only gone one year without a contract. MR also advised the members of his intent to let the existing reserve($90,536 for Police and 205 for Fire)to fall to free cash and then appropriate the funds back to the salary line in FY07. Mark Nichols a.Ked if MR intended on asking to use free cash to fiend the additional amounts ($75,074—Police; $52,888—Fire); MR did not feel he had enough justification at this time to make such a request. Vice Chairman Mike Batsimm made a motion to suspend the rules to entertain a motion on new information. Mark Nichols seconded the motion and the motion carried unanimously. Paul Stewart then requested the group vote individually on each department request. Vice Chairman Mike Batsimm made a motion to waive the 1112th rule and authorize the Community Development Department to spend$13,730.33 to fund costs associated with the office relocation. Mark Nichols seconded the motion and the motion carried unanimously. Vice Chairman Mike Batsimm made a motion, seconded by Eva Hamori, to suspend the 1/12th rule and authorize the Veterans Services Department to spend$12,400.42 in the month of June. The motion carried unanimously. Mark Nichols made a motion to waive the 1112th spending rule to authorize the Police Department to spend$22,130 towards additional supplies. Vice Chairman Mike Batsimm provided the second. Paul Stewart then asked why this was not falling to free cash and then fund the adjustment in FY07. After a brief discussion on the mechanics of the request, the members agreed to vote. The members unanimously voted in favor of the motion. Mark Nichols made a motion to suspend the 1112th rule to authorize the Fire Department to spend$28,237 towards additional supplies. Vice Chairman Mike Batsimm seconded the motion. Mike Giarratano ("MG") then queried how this change may affect the FY08 Budget comparisons to prior year estimates. MR explained the budget will reflect the actual expenditures needed for FY08. The members then voted unanimously in favor of the motion. MR then gave the FinCom a formal invitation to attend the Board of Selectmen meeting next Monday, June 26, to discuss the FinCom's presentation made at Annual Town Meeting. CM agreed to attend and represent the Committee. Mark Nichols thanked MR for the invitation. D. Warrant Articles: MR then walked the members through the Special Town Meeting Warrant Articles. Mark Nichols queried whether there would be a provision in Article 1 to allow citizen's to opt out of the trash fee. MR `ed State law requires fees to be voluntary and those opting out would need to provide proof of an alternate disposal method. Melinda Coppa("MC") noted the discussions from the Board of Selectman meeting indicated additional services, such as Christmas Tree pick up and yard waste, are now included in the flat fee rate. She raised concerns over this type of waste falling outside the language in Article 1,which states only Solid Waste, Garbage, Rubbish and Refuse, and expands the scope originally presented to the Citizens at Annual Town Meeting. MC added that she is Finance Committee Meeting Minutes for June 22,2006 Page 2 D. Warrant Articles (Continued): 1.00% in favor of charging fees for these other services individually. Vice imnan Batsimm ("VCB")noted this service would only add approximately$5 to the fee. MC reiterated the fee is now expanded to include items not previously presented to the Citizens and her concern that some citizens may object to the change without notice. MC noted the need to make sure the Citizens understand the vote for a fee is just to give the Selectmen authorization to establish a fee and not to vote on the specifics of the fee. MG asked MR whether the calculation supporting the$160 per household estimate is available for review. MR agreed to provide the Committee with the calculation. MC requested a brief update on the negotiations with Ozzie Properties. MR noted Ozzie Properties has leased 60% of the main building and still plan on pursuing residential housing, whether a 40B or 40R project. MR then defined the economic differences to both the Town and Developer between the 40B and 40R options. He also noted the articles to rezone require State approval first; however, the State refused to shorten the 90 day review period so no action can be taken on these articles. VCB then provided an overview of the PAY-T sub- Committee progress and handed out the presentation they plan to make to various organizations around town. VCB also added the group anticipates implementing the program on October 1 and may seek to fund the flat fee portion with an override. CM then noted the Special Town Meeting Warrant only included three financial articles. MC reverted to the override and trash fee discussion by asking, theoretically, if the override amount could go directly to a Solid Waste Enterprise fund; MR noted any override approved by the voters must go to the General Fund and can not go directly to an enterprise fund. MR further added the override will not protect the service after the first year. In addition, MR noted Town Counsel stated the fee could go retroactively back to the beginning of July and he no longer anticipates needing to use Stabilization Fund money to start the program. The members briefly discussed with MR the status on the Agreed Upon procedures for the School Department, new accounting system implementation and consolidation of personnel services. Citizen `B" Fink requested information on how the TBI agreement would impact the trash fees. MR noted the weekly recycling pick up could save approximately$250,000 per year. Adjournment: The members agreed to meet next Wednesday, June 28 and to post a meeting for Thursday, June �y should they need the extra meeting. Mike Giarratano made a motion to adjourn at 7:35pm. Mark Nichols seconded the motion and it unanimously passed. Approved: Vote: X: