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HomeMy WebLinkAbout2018-01-09 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date January 9, 2018 Meeting Location: School Administration Building, 566 Main Street Timothy Tschirhart, TT, Chairman X Ed MacMillian EM X Jennifer Goldman, JG, Vice Chair X Divya Bhatnagar, DB X Karin Blake, KB X Charles Trafton CT Thomas Ringler, TR Angela Ciofolo, AC X Liz Gerron, LG X Sasha Weinreich, SW X 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. Non Finance Committee Members in attendance Ray Santilli (RS), Assistant Town Manager Lyne Savage (LS), Budget Director/Town Accountant Call to order 6:53 Review Revenue/Fixed Costs Committee Report Findings Discussion starts on or about 6:54 pm/00:28 on video time TT: Spoke of the Revenue and fixed cost Committee and then questioned LS on updates relative to the cost and possible increase of insurance. LS: Responded back stating that she is waiting for the insurance company to get back, it should be sometime this week, with what they are projecting. They are not going to give us definite numbers,just an estimate of a potential increase. When I get this information back, I will reschedule a meeting in the next week or so with LG and TT. Review Capital Improvement Plan including bond debt Discussion starts on or about 6:57 pm/04:00 on video time TT: We have RS and LS tonight to discuss and answer our questions with regards to the Capital Improvement Plan (CTP). I January 9,2018 JG: Asked a question regarding the approval of the Kindergarten Center that was approved with estimates from an engineer designer at Town Meeting. Then we got an actual bid(after Town Meeting) and the bid was actually higher than the engineer designer's estimate. RS: Responded back, commenting on the final design, and the increase per square foot cost. JG: Commented on the Atkinson Roof cost and that the money was allocated and was pushed into covering the Kindergarten Center, but I did not see another entry for Atkinson Roof cost. RS: Responded that they had the roof evaluated and stated that they felt that the roof has held up better then what they anticipated, and felt that they can hold off on that repair for a few years. RS: Commented that this is a 5 year CIP we try to anticipate, we told our departments and division directors that you can't just think of next year you need to think of the next 5 years. We try to set in stone years 1, 2, and 3 and with years 4 and 5 a lot of things can happen, and can change and create possible modifications and adjustments. JG: Spoke of the Senior Center and stated that she thought that the Town approved for a renovation and not a rebuilt RS: The original plan has been to expand and renovate the present Senior Center Building, but in the past few months we have been approached by a developer on perhaps donating land to the Town on building a Senior Center. We are 90%plus confident on a new built,but if that fails then we will go back to our original plan. This plan was discussed, and RS was questioned by the Finance Committee members with regards to this new proposed plan of the Senior Center. RS: Spoke of the Kindergarten project that includes about$85,000.00 worth of site work. We want to do it right the first time, and spoke of improvements and also various plans such as widening the road,making it 3 lanes with traffic lights. Also speaking how buses will come in and out of the school areas. Spoke of the middle school and how traffic enters on various roads and streets from school property. The members asked a variety of questions to RS and LS regarding the submitted CIP report; Such as debts, projects, borrowing, explanations on graphs and charts, increase on net debt services, funding, costs, interest rates, radios, fire apparatus, equipment, design costs, rating proposed projects, investment strategies, etc. LS: Stated that the department heads are very good at following the 5 year plan. LS: Also stating that when we have cash for projects, we pay for it, rather than creating more debt by borrowing. RS: Made a statement stating that a while ago the Town made a decision, that when we have a good year we leave rates alone (regarding water/sewer). People would rather see stability in their water and sewer bills then fluctuating rates. JG: Asked of the Fire Station II RS: Commented that it is going to need some work, it is about 40 years old and because of that, 2 January 9,2018 and other reasons it is part of the Master Plan II. LG: Stated that just as a note, regarding the Fire Station II, Andrew Maylor had responded to this issue and he did not want to put the Fire Station II ahead of the Franklin School. Andrew Maylor had some rational issues for this, and I am sure it will be discuss at a future meeting. Maybe we can put a pin in this Fire Station II(to be discussed in future meeting). TT: Thank you RS and LS for the CIP presentation. Review School Budget Discussion starts on or about 8:07 pm/01:14 on video time TT: Next thing is review of School Budget, originally the School Committee Meeting was supposed to be presenting the Budget last Thursday, the meeting got cancelled because of the snow. TT: Stated that he asked SW and JG to give a high level briefing (or oversight) on the School Budget. JG: Stated that on page 2 of the Superintendent's Recommended Budget (the letter), the total proposed FYI Budget is 3.65% increase. JG: Continuing on to page 7 (4 items most important to be focused on), 1.Elementary Classroom Size (quoting from the Superintendent's Budget Report) "Yet, this budget does not allow us to backfill any of the vacated classrooms, as our focus needs to be on staffing the new ECC" 2. Middle School to Reduce between School and Class Size, and that they were unsuccessful in getting State (MSBA) Funding. 3. English Learning Program, increase in cost in English Program and last, 4. Leadership Structures. RS: Stated that the Early Childhood Center will now be referred to as the ECC. Confirm MMOD team has solid financial footing; Host Agreement Terms Discussion starts on or about 8:16 pm/01:23 on video time TT: Stated that CT met with the Property owner of"Osgood Landing"with regards to MMOD. CT: Stated that he volunteered to meet with Doctor Goldstein privately. Doctor Goldstein was very forthright and open with all my questions, with regards to the project and finances. My four main take aways from my questions to Doctor Goldstein were; I. If it is approved, and it does not succeed, CT stated that they are very viable to fund this over the coming years. Goldstein is Liquid with no debt. 2. Doctor Goldstein's other business will not be cross collatorized with any of Doctor Goldstein's other business's 3. I believe,based on our conversations he has the capital and will to see this through. 3 January 9,2018 4. There is nothing like this on the table, or even on the horizon, the way they do Business Development here in this State is that they wait for someone or a company to call the State and find out where a good place or location to do business would be, and in this case we are very lucky and fortunate that he is a resident of North Andover. JG, KB, TR and TT thanked and praised CT for doing this. The Finance Committee members discussed if they should take a position or write a statement on this at the Town Meeting. TT: Stated that he will draft a comment or statement for the January 30th Town Meeting and it can be reviewed by all the members at the next Finance Committee Meeting (January 23rd) Review calendar to discuss doing January 23rd Discussion starts on or about 8:52 pm/01:59 on video time TT: We will need to have an additional meeting on January 23Yd and most likely have Dr. Price coming to discuss the School Budget, and then to review the statement regarding the MMOD. Approval of Minute December 5t' 2017 Discussion starts on or about 8:55 pm/02:03 on video time JG: made a motion to approve minutes as written for December 5th, 2017 SW: Second All in favor to approve minutes as written New Business Discussion starts on or about 8:57 pm/02:04 on video time CT: Wanted to disclose to the Finance Committee that he has a business in Andover that he plans on moving to North Andover, one of the places I am looking to relocate my office is at Osgood Landing. TT: Suggested he may want to contact The Town Counsel Public Comment Discussion starts on or about 8:59 pm/02:07 on video time There was no public comment Ad'ournment 9:00 PM LG: made a motion to adjourn CT: Second the motion All in favor to adjourn 4 January 9,2018 Document Table Agenda finance Committee January 9, 2018 Minutes for December 5th, 2017 North Andover Public Schools Superintendent's Recommended FY19 Budget Questions regarding CIP FY19 FY18 Budget Status Report as of Dec 13, 2017 Management Letter June 30, 2017 Reports of Federal Award Programs June 30, 2017 Comprehensive Annual Financial Report June 30, 2017 Capital Improvement Plan General Fund 2019-2023 5 January 9,2018