Financial Forecast Minutes May 8 2018Minutes of the
Financial Forecast Committee
City of Beverly
May 8, 2018, 7 pm.
City Hall — Conference Room A
In Attendance
Ward 2 City Councilor Estelle Rand, School Committee Representative Rachael Abell, City Council
Citizen Representative Karen Fogarty, City of Beverly Finance Director Bryant Ayles, City Council
Budget Analyst Gerard Perry, Director of Finance for Beverly Public Schools Jean Sherburne, Ward 3
City Councilor Jim Latter, Former School Committee and Mayoral Appointee Paul Manzo. Also
present was City Councilor Scott Houseman. Absent Ms. Ferretti, Medley Long.
Discussion
A general discussion ensued regarding modifying the draft financial forecast as prepared for this
meeting. Ms. Sherburne presented new modified financials for the school department, reflecting
reductions from a previous presentation due to salaries and wages, sped, and benefits. These reductions
reflected overall spending for the Beverly Public Schools for the following: FY19 - $58,041,535; FY20
- $60,449,114; FY21 - $62,295,848; FY22 — $64,099,683. After a lengthy conversation regarding
various school related matters, a motion was made by Ms. Rand, seconded by Mr. Ayles, to incorporate
the aforementioned school expenditures into the financial forecast. Motion passed 6 -0.
Chairman Latter discussed his thoughts on financial forecasting over the next several years, and his
belief that the forecast is a tool for policy makers to assist in their deliberations. Mr. Latter explained
that future deficits should inform all Beverly policy matters about the challenges the City faces.
A general discussion ensued regarding the new police station, and whether the forecast incorporated
appropriate debt associated with this expenditure. Mr. Ayles briefed the committee that the forecast did
utilize the necessary debt for the police station, and that approximately $1M has been committed from
free cash to start the project.
A general discussion occurred regarding the future revenues of the City. Ms. Abell explained it was her
position that new growth should be increased from $950k to approximately $1.1M or $1.2M, given the
recent history of this certification. Chairman Latter, Mr. Manzo, Mr. Ayles, Ms. Fogarty, and Mr. Perry
all expressed reservations about using a higher new growth figure when forecasting this revenue, given
their past experiences. After a lengthy discussion on this matter, Mr. Ayles made a motion to approve
the revenue projections, utilizing the lower $950K new growth figure, seconded by Mr. Manzo. Motion
was adopted 5 -0, with Ms. Abell abstaining.
Ms. Rand requested minor modifications to the narrative of the forecast document relating to
recognizing the historically conservative approach for revenue forecasting and some language
associated with the police station. Mr. Perry indicated he would incorporate her comments as
suggested.
Chairman Latter indicated he would try to book one last meeting to finalize the forecast document. Mr.
Ayles, made a motion to adjourn, seconded by Ms. Sherburne. Vote 6 -0. Adjourn at 9:00pm.
Respectfully Submitted,
Gerard D. Perry, City Council Budget Analyst