HomeMy WebLinkAboutFCMeetingMinutes_01.31.06 Finance Committee Meeting Minutes
Joint Board Meeting
January 3I.,2006
kttendance: All Finance Committee ("FinCom")members attended. In addition, all five members of the
Board of Selectmen("BofS"), Al Perry, Chuck Ormsby, Tiro Pybus and William Kelly from the School
Committee, Town Manager Mark Rees and Superintendent Dr. Harry Harutunian were in attendance_
Call to Order: Chairman Mitchell called the meeting to order at 6:30 pm.
I Opening Comments: Chairman Keith Mitchell opened the meeting up with an introduction of the Finance
Committee, for those in the audience and at home. He informed the public that this meeting was not a public
hearing but rather a means to open communication among the boards to work together for the whole Town
during this budget process. He did urge those citizens who do want to voice concerns to attend the FinCom's
Public Hearing in March. He then highlighted the FinCom's past accomplishments and where the board was
heading; focusing on budget drivers, such as Health Insurance and employee contracts.
11. Ongoing Budget Activities:
A) Town Manager: Mark Rees gave a brief overview of the budget process and presented possible revenue
and fixed cost changes, including the possibility of using$500,000 of the money just appropriated to the
Stabilization Fund in December, from the final report produced by the Revenue and Fixed Cost Review
Committee. These changes may or may not appear in his recommended budget due out next week. He did note
the 30% increase in the State Assessment for Retired Teachers Health Insurance; the Town voted to participate
back in 1964 and could vote to opt out of this at Town Meeting. In addition,he added that historically state aid
hasn't been reduced from the Governor's budget, which currently gives North Andover$227,741 increase in
funding but still falls short of the Town's needs.
B) School Superintendent: Dr. Harutunian recapped the School Department's need for$2.9 million in FY07
"o maintain level services. In addition,he suggested looking to the State to help with unanticipated FY06 fuel
costs overruns, for both the Municipal and School Departments. He then gave a brief update on the possibility
of a Chapter 70 formula change, which could increase the aid approximately$400-$500k,but it is not likely to
happen this year.
III. BofS/School Committee Comments & Questions: Starting with the BofS and followed by the School
Committee members, each individual gave a public comment regarding the budget process, areas of concern
and/or communication going forward. There was consensus agreement in continuing the"Budget
Communication Group" and expanding the existing group to include Finance Committee members. Some
members highlighted the need to get the State to change laws and mandates allowing Towns to have more
flexibility in controlling costs. Town Manager Rees stated the Governor's support for advocating more
flexibility for Town's to manage health insurance costs in his budget. Dr. Harutunian stressed reaching out to
our State Representatives and Senators to understand the Town's issues by inviting them to the Public Hearing
in March. Selectman Xenakis also stressed the need to control costs, most notably compensation and benefits,
as being the only real way to bring the budget under control.
V) Adjournment: Melinda Coppa, with a second from Mark Nichols, made the motion to adjourn at 7:34 pm.
The vote was unanimous.
Approved: Vote: X