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Home My WebLink About2018-12-11 Finance Committee Minutes TOWN OF NORTH ANDOVER FINANCE COMMITTEE Meeting Minutes Meeting Date December 11, 2018 Meeting Location: School Administration Building Timothy Tschirhart, TT, Chairman X Ed MacMillian EM X Jennifer Goldman, JG,Vice Chair X Divya Bhatnagar, DB Christine Allen CA X Charles Trafton CT X Thomas Ringler, TR X Angela Ciofolo, AC X Liz Gerron, LG X Sasha Weinreich, SW X Note: All FINCOM votes are subject to a re-vote upon receipt of new information. Note: Documents used in this meeting are listed in Document Table, herein. Non Finance Committee Members in attendance Andrew Maylor(AM), Town Manager Denise Casey(DC), Assistant Town Manager Meghan Jop (MJ), Deputy Manager and Economic Development Pledge of Allegiance Call to order and Opening Comments Discussion starts on or about 7:04 pm/00:00 on video time • Pledge of Allegiance • Call to order and opening comments— Tim Five Year Financial Forecast—Andrew Maylor Welcome to Denise Casev, Assistant Town Manager and Jennifer Jop, Deputy Manager Economic Development Discussion starts on or about 7:05 pm/01:00 on video time •Five Year Financial Forecast—Andrew Maylor • Welcome to Denise Casey, Assistant Town Manager and Meghan Jop, Deputy Manager Economic Development December 11, 2018 Page 1 AM: Introduced the two new staff members to the Committee. I am very excited about the changes that are taking place at the Town Hall. AM: Introduced Denise Casey(DC) as the new Assistant Town Manager. AM: Then spoke of DC's assets and what she can bring to the table, her history and her years of extensive experience. DC will be taking over the responsibility of Community Service Division as well, the Senior Center, Veterans' Services, Library, Youth Center and Human Resources (Cathy Darby will be reporting to DC). AM: Then introduced Meghan Jop (MJ), as the Deputy Manager and stated that she will be responsible for all departments that come under Community Development, such as Planning, Building, Health, Conservation and Zoning. AM: Commented that MJ has hit the ground running to try and get the Businesses in Town up and running after the post gas disaster and spoke of the gift certificate program that she has been working on to help businesses in Town. AM: Continued to speak of other gas related programs that MJ has been, and will be involved in. AM: Continued to say that both DC and MJ have both been intimately involved in all things Gas Disaster related. AM: Stated that it is great to have them (our two new hires). The Committee asked questions to AM regarding the Gas Disaster. AM: Updated the Board on the completed work, impact, scheduling, issues and future work,how work will be funded, roadway repairs, sidewalks, etc., regarding anything that is Gas Disaster related in Town. AM: Commented to the committee that demolition is much easier than construction. MJ: Explained how the gift card promotion will work, and that it is scheduled for this Saturday, December 15cn -------------------------------------------------------------------------------------------------- AM: Moved on to the 5-year Forecast. (See attached Financial Forecast Fiscal Years 2020-2024) AM: Spoke of the Budget Development Process and the steps and milestones that bring us all the way to Town Meeting that is scheduled for May 14"' AM: We want the Community, Committee and Boards to be aware of our goals, mission and vision. We want to make sure that what we are recommending in terms of financing and spending is consistent with those goals. We also want to focus on the goals to be; professional, cost-effective government through prompt, courteous service and provides equitable service across the entire community by insuring that the public's business is conducted with the highest level of integrity and trust. AM: Commented that working together we get a lot accomplished. AM: Stated that we did a good job of transforming from what was a "AA" environment into a solid"AAA" environment. AM: Stated what is missing here is creativity from all of us (myself included), we need to recommend and come up with better ideas for fiscal stability and recommendations for more programs. December 11, 2018 Page 2 AM: Spoke of the increase 2.5% Tax levy. AM: Commented on new growth to be increased to $650k for the 5 year period, it was at $600k for many years. AM: Spoke of the FY20 increase to 3.8% in FY20 on Local Receipts (and 3% annually thereafter) for motor vehicle excise tax and interest income. The Committee discussed, commented and asked various questions to AM regarding his presentation. AM: Spoke of a Variety of topics during the presentation such as; Health Insurance and of the transition over to GIC, Personnel Benefits, and Retirement Appropriation, OPEB, tax increases, Shared Services, Debt Services, goals, taxes, The Senior Center, etc. AM: Explained the charts and graphs that were included in the presentation. AM: Stated that he is going to recommend to set aside pref ended dollars in the OPEB Account for each new hire. AM: Spoke of how North Andover gets billed by the Commonwealth for such things as the MBTA, mosquito spraying, MVRTA, and that this expense is expected to rise by 4%in FY20 and 5% annually thereafter. AM: Spoke of the Public Safety expenses and that they are assumed to increase by3% in FY20 and 3% in each year from FY21 through FY24. AM: Commented on all the things that they did well such as employee benefits, classroom size (we continue to remain focused on this), succession plan, SPED, curriculum fund, revenue growth etc. AM: Displayed the chart to the Committee that shows the efforts to achieve classroom size goals. AM: Spoke of the LED Retrofit of the Town's owned Street lights, and the new Senior Center. AM: Commented on the funding, design, construction, and upgrades, of the Franklin school, Atkinson School and Kittredge School. AM: Commented on the Recreation Complex project and that it is a very positive thing for the Community. The Finance Committee thanked AM, DC and MJ for coming to the meeting tonight. December 11, 2018 Page 3 Public comment(s) Discussion starts on or about 8:58 pm/01:53 on video time Stan Limpert of 43 Stonecleave Road expressed how impressed he was with AM's Presentation tonight. Revenue & Fixed Cost Review Committee Report—Liz Tax Rate Classification- Tim Discussion starts on or about 8:59 pm/01:54 on video time LG: Started off saying as a Committee we met twice LG: Went on to say that the projected Revenue new growth will stay at $650,000. Interestingly this year's new growth is 1.1 million dollars. Then spoke of how we as a town approach things very conservatively that is why the projected new growth will stay at $650,000 and not go to 1.1 million. LG: Commented to the Committee that the Meals Tax and Vehicle Excise tax are up slightly. ----------------------------------------------------------------------------------------------------- TT: Informed the Committee that there is a packet for everyone to go through regarding the tax rate classification. TT: Spoke of taxes and what various residential properties pay in taxes, and also how much commercial properties pay in taxes. TT: Discussed assessed value of properties, the various percentage of taxes among residential homes, condominiums, multi families etc. Next Meeting—January 8 Review Capital Improvement Plan (Selectman approve 1/14)including bond debt-Andrew Mavlor Review &Discuss School Budget (School Committee meeting 113; approving 1131)—Jen, Chris, Sasha Discussion starts on or about 9:10 pm/02:07 on video time TT: Spoke of the next meeting that is Scheduled for January 81"and that we will discuss the CIP, and also AM will be presenting the CIP to us. TT: Then spoke of upcoming School Committee Meetings, and who will be attending these meetings from the Finance Committee. December 11, 2018 Page 4 On-Going Draft Finance Committee Policy and Procedures Restructured Draft Finance Committee Report(to be handed out at meeting) Discussion starts on or about 9:15 pm/02:11 on video time TT: Stated that the Rules and Procedures are now with Legal Counsel for review. CA: Spoke up regarding her suggestion that she wanted to see made in the Finance Committee Policy and Procedures under Rules and procedures and Voting at Item E where it speaks of, Formal Minority Report. CA: went on to explain that since we are a 9 member committee it should be more than 2 people, supporting a minority report, it should be 3. TT: Responded back to CA stating that I like the idea of this suggestion, but also stated that he wanted to do a little research on it first. Minutes from prior meeting: October 23, 2018 Discussion starts on or about 9:23 pm/02:18 on video time LG: Made a motion to approve the minutes as written from October 23, 2018 TR: Second the motion All in favor to approve the minutes. Adjournment at 9:25 CA: Made a motion to adjourn the meeting LG Second the motion All were in favor to adjourn Document Table -Agenda Finance Committee Meeting for December 112018 -Minutes from October 23, 2018 -FY 20 Budget Calendar -Finance Committee Policies and Procedures -Finance Committee Policies and Procedures (markups) - Letter from Revenue Fixed Cost Committee, dated November 19, 2018 to Andrew Maylor - North Andover FY20 Budget Directives (draft) -Financial Forecast FY20 -Tax Clarification. December 11, 2018 Page 5