Financial Forecast Minutes March 12 2019Minutes of the
Financial Forecast Committee
March 12, 2019
7:05pm
City Hall — Conference Room A
In Attendance
Chairperson and City Councilor Estelle Rand, School Committee Member Kelley Ferretti, Mayoral
Appointee Paul Manzo, City Council Appointee Karen Fogarty, Finance Director Bryant Ayles, School
Committee Member Rachael Abell, School Committee Appointee Medley Long, City Councilor James
Latter, and City Council Budget Analyst Gerard Perry.
Absent was Beverly School Finance Director Jean Sherburne. Also present was School Committee
Member Lorinda Visnick.
Discussion
Chairperson Rand opened the meeting indicating that the committee would explore the revenue's of the
City of Beverly during this meeting, with less emphasis on school's revenues due to Ms. Sherburne's
absence, but with an aim to understand FY19 before moving to the forecasting.
Motion made by Mr. Manzo, seconded by Ms. Fogarty to approve the minutes of the February 28, 2019
meeting as amended by Ms. Abell. Motion passed unanimously.
Mr. Ayles began a lengthy presentation regarding the revenues of the City as articulated in a
spreadsheet he distributed to the committee members. Mr. Ayles briefed the committee on the
following: the McKay school proceeds; how Proposition 2 1 /z works; a general discussion on the history
of new growth within the City; and a briefing of all existing revenues.
Mr. Ayles answered numerous questions from Committee members regarding the aforementioned
presentation topics, including Mr. Latter's question on the average rate of growth being 3 1/2 %. Ms.
Fogarty brought up concerns regarding revenue contraction, and its impact on the tax rate /levy, which
Mr. Ayles explained in terms of implications like increasing receivables, risk of spending money not
collected, need to cut spending, degradation to balance sheets, and the City having to be more
aggressive wit property owners. A general discussion occurred from several members on property
valuation and its impact on the setting of the tax rate. Mr. Ayles added how the Assessment Department
in Beverly works and that Division of Local Services (DLS) re- certifies every five (5) years. Mr. Ayles
presented historical data associated with motor vehicle excise, local aid as a percentage of the overall
budget, and new growth trends dating back to 2004.
Chairperson Rand suggested that in keeping with her intent to keep the meetings as short as possible,
that Mr. Ayles finish his presentation on all remaining FY19 revenues. Mr. Ayles then went on to
explain state aid, school construction reimbursement, PILOTS, Medicaid, Medicare D, local receipts,
meals and rooms taxes, interest income, transfers from enterprise funds, special revenue transfers,
penalties and interest, and one time revenues (McKay proceeds).
Chairperson Rand suggested the next meeting on March 28t' would start with remaining questions
related to revenues, and then would deal with projected revenues over the next five (5) years. Mr.
Manzo requested Mr. Ayles provide some additional information about the deltas on the prior forecast
to actuals. Mr. Latter added that it would be useful to look especially at the areas that are more
"volatile" using some historical data related to revenue "fall off." Motion made by Ms. Ferretti,
seconded by Mr. Manzo to adjourn. Motion was unanimous, and the meeting adjourned at 8:25 p.m.
Respectfully Submitted,
Gerard D. Perry
City Council BudgetAnalyst