CITY of METHUEN CITY COUNCIL FINANCE COMMITTEE Thursday

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CITY of METHUEN CITY COUNCIL FINANCE COMMITTEE Thursday CITY OF METHUEN CITY COUNCIL FINANCE COMMITTEE Thursday, February 6, 2020 - 6:00 PM Methuen City Hall - 2nd Floor Conference Room (Meeting Relocated to Great Hall at 6:55pm) MEETING MINUTES 1. CALL TO ORDER: The meeting was called to order by Committee Chairman and Councilor Steve Saba at 6:03pm. 2. ROLL CALL: Members Present: Councilor Steve Saba, Committee Chair; Councilor Eunice Zeigler and Councilor David Beauregard, Jr. Also Present: James McCarty, City Council Chairman Staff Present: Kellie Hebert, Fiscal Analyst 3. COMMITTEE LOGISTICS: Schedule & Frequency of Meetings: Meetings of the Committee will take place at least once monthly, but special meetings may also be added as needed. The regular meeting schedule will be the Fourth Wednesday of each Month at 6:30pm. Proposed Committee Meetings: Regular meetings are proposed for the following dates: Fiscal Year 2020: February 26th, March 25th, April 22nd, May 27th, and June 24th Fiscal Year 2021: July 29th, August 26th, September 23rd, October 28th Rescheduling dates to be determined: November 25th & December 23rd Reports: Reports and recommendations to the full City Council will be made monthly by the Committee Chairman Councilor Steve Saba. A verbal report will be made to the full Council, in addition, and copies of meeting minutes and related documents will be included in the Council’s packet for review by the full City Council. If any topics require a presentation, discussion or formal deliberation by the full Council, the Chairman of the Finance Committee will request time on the regular agenda. Next Meeting: The next Finance Committee meeting will be held Wednesday, February 26, 2020 at 6:30pm. The Committee prefers the 2nd Floor Conference Room at City Hall for regular meetings; however, if there is a conflict with the space, another location will be specified in the upcoming meeting postings. Finance Committee Meeting 2/6/2020 (Voted 2/26/2020) Page 1 of 4 Meeting Agendas: The members discussed the format and contents for the Committee Meeting agendas. Chair Saba requested an agenda item to allow time for “Public Participation” at the beginning of each meeting. Members discussed the types of reports that will require regular monthly review and discussion, such as the CAFO’s budget reports and the City’s vendor reports. There was mention of the Schools summary update reports that used to be received monthly. The School Committee and City Council may be required to meet two times per year. If so, a Joint Meeting could be held in March. Council Chairman McCarty offered to schedule this for a future Council agenda. The members cited various financial and budgetary matters that might be discussed during upcoming Committee meetings. Ms. Hebert noted that as they meet more regularly, special topics may be explored further. She cautioned that priorities will need to be made because there is only limited time to establish a solid FY21 Budget review process. Regular, standing agenda items for the Finance Committee meetings could include, but aren’t limited to: Roll Call, Public Participation, Monthly Reports, Fiscal & Budget Planning, Financial Reports and Special Topics. Items under “Special Topics” may be prioritized based on key issues and the timing of budget deadlines. 4. GOALS & OBJECTIVES: The members discussed goals and objectives for the Finance Committee. A draft list of suggested goals and objectives, including an initial list of sample tasks, was distributed by Fiscal Analyst Kellie Hebert for discussion. The list is subject to revision and can be modified in the future if needed. Three (3) primary goals were outlined for the Committee’s focus: Fiscal/Financial Planning, Budget process and Staff Direction/Oversight. Each goal represents a broad statement of purpose and intent for the Finance Committee’s work. Each includes one to four objectives to help direct and guide the work of the Committee on behalf of the full council. Ms. Hebert gave an overview of the three goal statements. Beginning with Goal #3, she indicated the importance of providing direction and support for her role as Fiscal Analyst. Ms. Hebert requested that the Committee members outline statements of expectations and performance benchmarks they have for the role of Fiscal Analyst. Ms. Hebert discussed Goal #1 related to the City’s financial management activities. While fiscal and financial management represents an on-going, year-round activity that encompasses many activities of numerous departments and agencies throughout the fiscal year, it represents a distinct category of responsibilities for the City Council as compared to the annual budget process. Finally, Ms. Hebert discussed Goal #2 related to the annual budgeting process. The budget process is a more “finite” process with a beginning and end point for the City Council. Councilor Zeigler noted that it would be very helpful if the Finance Committee could receive a draft of the proposed budget before the full City Council receives it. This would allow the Finance Committee time to review the budget prior to when it must be presented to the full City Council and asked for it review and votes of approval. Councilor Zeigler requested that the Finance Committee develop a presentation on how councils can approach the budget from “bottom line cuts” versus “line item cuts”. This needs to be clarified perhaps Finance Committee Meeting 2/6/2020 (Voted 2/26/2020) Page 2 of 4 through a review of state statute and/or a Finance Committee public presentation prior to the budget process so that the City Council’s role can be clarified before the budget review process gets underway. There was a discussion among the members about this issue. Council Chairman McCarty stated his opinion that line-item veto is necessary for the Council to control city spending. All agreed that there is a need for further clarification and legal reference with regard to the Council’s budget review and approval authority. In particular, the use of a “line-item veto” approach versus reductions from general budget categories, departmental requests or types of expenses (personnel versus non-personnel). Ms. Hebert noted that there are various municipal policies and practices and legal interpretations with respect to budget control between executive and legislative authorities. She agreed to research this further. The matter will require further discussion with the Mayor and CAFO, well in advance of the Council’s official budget review process. The Committee voted unanimously to approve the Goals and Objectives as drafted on February 5, 2020: Motion by Councilor Zeigler to adopt the Finance Committee’s Goals and Objectives as drafted; Seconded by Councilor Beauregard; Approved Unanimously. Councilor Zeigler requested that the document be placed online for public information. Ms. Hebert agreed to place this, and other Committee information and documents, onto the City’s website. It was agreed that sharing this type of information would be helpful and transparent for residents and officials. Ms. Hebert will work to develop a key location on the website where documents used and referenced by the Committee can be electronically accessible and made more widely available for 7/24 review. 5. MOTION TO ADJOURN: Motion to Adjourn by Councilor Zeigler; Seconded by Councilor Beauregard at 8:07pm; Unanimous. The meeting adjourned at 8:07pm. 6. DOCUMENTS USED OR REFERENCED DURING MEETING: Draft List of Goals and Objectives for Finance Committee (Dated February 5, 2020) Monthly “Budget to Actual” Budget Report (Dated January 17, 2020) Draft List of Standing Agenda Items for Finance Committee Meetings Signed by: ___________________________ Kellie A. Hebert, Fiscal Analyst ____________________ Date Voted & Approved Finance Committee Meeting 2/6/2020 (Voted 2/26/2020) Page 3 of 4 Standing Agenda Items for Finance Committee Meetings (Drafted February 11, 2020) Based on the discussion and various feedback received from the Committee at the meeting held on February 6, 2020, I’d recommend that the standard agenda include seven (7) headers as listed below. Note that any bulleted items are listed only as examples. These special topics and financial matters can be planned and added to future agendas as timing permits, and as priorities become further refined by the Finance Committee with the direction and feedback from the full City Council. DRAFT FINANCE COMMITTEE MEETING AGENDA I. Call to Order & Roll Call II. Public Participation (Up to 5 minutes per speaker) III. Monthly Reports: A. Budget-to-Actual Report B. Vendor Reports C. School Summary MS Excel Report IV. Fiscal & Budget Planning: A. Fiscal/Financial Reports: Forecast, Capital Plan, Audit, etc. B. Budget Process: forms, format, schedule, review process, policies C. Status Report on Finance Committee Goals & Objectives V. Financial Reports (as needed*) o Examples of periodic reports/presentations: . Tax rate projections, property assessments, DOR/DLS Reports . Bi-Annual Meetings with School Committee VI. Special Topics (as needed*) o Examples of special topic discussions to be planned/prioritized: . City Council’s FY21 Budget Priorities . Stabilization Funds, Potential SPED Stabilization Fund . Special Reserves, Revolving Accounts, Enterprise Accounts . Police Detail Account & Collections, Snow & Ice . Bonds status, Debt Management, Cherry Sheet, CPA . Budget Transfers, Financial Policies, Capital Planning . OPEB, Health Insurance Plan Design, Retirement/Pension Costs . Fiscal Analyst activities/benchmarks VII. Miscellaneous: Topics not otherwise anticipated. Finance Committee Meeting 2/6/2020 (Voted 2/26/2020) Page 4 of 4 .
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