Financial Forecast Minutes_draft Jan 30, 2020Financial Forecast Committee
January 30, 2020
DRAFT
CITY OF BEVERLY
PUBLIC MEETING MINUTES
BOARD OR COMMISSION: Financial Forecast Committee
SUBCOMITTEE:
DATE: January 30, 2020
LOCATION: Beverly City Hall — Council Chamber /Conference Room B
ABSENT: Kelly Ferratti
RECORDER: Sharlyne Woodbury
In Attendance
City Council Appointees: Chairperson and City Councilor Scott Houseman; City Councilor Stacey Ames;
City Council Appointee Karen Fogarty
School Committee Appointees: School Committee Member(s) Lindsay Ducharme; Lorinda Visnick
Mayoral Appointee: Paul Manzo
By Ordinance: Finance Director Bryant Ayles; Beverly School Finance Director Jean Sherburne
Ex Officio: Gerard Perry
Guests: Beverly Superintendent Dr. Sue Charochak; Rachael Abell
Chair Houseman calls the meeting to order at 6:35 p.m.
Discussion
Chair Houseman begins the discussion immediately. Tonight's topic is Revenues. Below is the Revenue
outline:
A. Property Tax: Prior FY levy limit
B. Plus 2.5 % Increase
C. Plus "New Growth"
D. Levy
E. Less: Overlay (Provision for abatements)
F. Tax Revenue Net of Overlay
G. State Aid (to general fund) net school choice reimbursement
H. School Construction Reimbursement
1. P I LOTS
J. Medicaid
K. Medicare D
L. Motor Vehicles, Boat Excise
M. Local Receipts
N. Meals and Room Tax
O. Internet Income
P. Transfers from Enterprise Funds
Q. Other Available Funds (Special Rev transfers)
R. Penalties and Interest
S. One Time Revenue
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January 30, 2020
Members take some time to discuss in depth line items A -D. Perry speaks to the line items and their
significance within the budget forecast. The main topic within the line items A -D centers on increasing
the property tax, Line item "A ". Houseman solicits member's comments and thoughts. At this time
members fully discuss the pros and cons as well as the public impact. Members are mostly concerned
with the impact to their wards. The main concern for Beverly citizens is affordable housing and cost of
living. Houseman comments to the need for funding programs and where that funding comes from.
Fogarty echoes his sentiments, and speaks to the conflict in what the city can deliver vs the con-
stituent's demands and expectations for services. Ayles suggests making "place holders" for certain
line items the committee would like to revisit. Members agree it is not their purview to set policy.
Perry explains increasing the property tax 2.5% over the next 2 -4 years is prudent to meet the needs
of the community over the next few years. Otherwise, expenditures will requires significant cuts. Perry
and Ayles jointly in both their official and professional capacity support the tax increase.
Houseman keeps schedule and begins discussion on Line item "C ". Ayles explains the processes and
data he used to determine the new growth number. This number is typically conservative. Members
discuss the subcategories of new growth. Visnick asks for a comparison of Line item C as it relates to
the city's Master Plan believing the financial forecast should support the city MP. Houseman offered
another developed area for comparison explaining the length of time for project completion in rela-
tion to new growth. Ayles details there are expenditures not accounted for in the report as they are
not appropriate to note here. Perry reaffirms financial forecasting is strictly based on operational
needs. Members are concerned with explaining the numbers to their constituents. Houseman sug-
gests as part of their recommendation to the council they require a graph or some type of visual tool
for the public.
Houseman moves the conversation to the remaining line items listed. The committee reviews items G
through I with no major issue. These numbers are consistent and conservative as past figures present
with historical data to support it. Ayles provides a brief summary for Line item "I" PILOT. The only
change is Endicott College nearing the end of their agreement. The city will need to renegotiate a new
agreement with the new college president. Once the solar field install is complete the city will have a
PILOT agreement with them. Moving on to Medicaid, Sherburne offers comment on Line item "J" and
the rule changes. Superintendent Charochak explains the change in billable therapeutic services pro-
vided to the schools. They will no longer be allowed to bill for these services because they do not have
qualified staff in the classrooms. She notes the school will be permitted to bill for services previously
not billable due to the Medicaid changes, yet does not know what the reimbursement will look like.
The school will need a full year to study the official impact of these changes.
Members continue on reviewing items K through S. Most line item numbers to not experience volatil-
ity and remain fairly consistent. Houseman asks for clarification on why Line item "L" is not part of
new growth. Ayles explains historically this is one of the positive revenue sources yearly. Moving to
item "M" Ayles notes this fund contains about 120 streams of local revenue i.e., dog registration, fees,
licenses, etc., and is stable. Line item "N" is new and does not contain a lot of historical data. Ayles
notes this line item experiences an annual step increase of 1 %. Members finish the line items with
Ayles noting for Line item "S ", a further explanation will be given during the Expenditures meeting.
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January 30, 2020
Houseman solicits final questions, comments or concerns. The Chair notes further line item explana-
tions will be detailed in the accompanying narrative reports once reports are finalized.
Items:
Approval of minutes (as available)
N/A
Conclusion
Houseman moves to accept the numbers on the spread sheet subject to modification with the inclu-
sion of notes in the narrative. Manzo and Ames seconded. The motion carried (8 -0).
Perry reminds everyone the fourth meeting is at the main Beverly Public Library February 6, 2020.
Adjourn
Houseman motions to adjourn. Visnick seconded. The motion carried (8 -0). Meeting adjourned at
8:20 p.m.
Next meeting scheduled February 4, 2020.
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