BOARD OF FINANCE MINUTES
FEBRUARY 24, 2003
I. CALL TO ORDER - The Regular Meeting of the Board of Finance was called to order at 7:30 P.M. by Chairman Harrison in the Selectmen's Chamber, Town Hall. Present were Messrs. Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio.
II. PLEDGE OF ALLEGIANCE -Mr. Hooper led the Board in the Pledge.
III. COMMUNICATION FROM AUDIENCE -None.
IV. MINUTES OF PRECEDING MEETING -January 27, 2003
On a motion made by Mr. Zacchio, seconded by Mr. McGuff, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the January 27th meeting, as submitted.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio. Mr. Hooper abstained, absent from the meeting.
V. OLD BUSINESS
02/03-04 -Review and Discussion: FY03/04 Budget Process -The
Chairman noted the presence of Messrs. Hines, Chairman of the Town Council and Councilman Shea. The Board of Finance reviewed in detail the past discussions on how to improve the scenario of the budget presentations in the hope of avoiding the necessity of holding more than one Referendum to approve a budget. The Councilmen agreed and voiced their willingness to work with the Board to promote the process and to advise the Board that they are diligently working to present a budget that will be acceptable to the citizens of Avon. The Board of Finance members were generally in agreement that the preliminary figures of a 9%+ tax increase will not be acceptable.
Several members discussed the possibility of setting percentage goals; asking the Boards to submit budgets within certain parameters. The Board would like to know if anything had
changed over last year's budget - how much, for example, would it cost to operate the school
district this year? Each member reported that he had been listing to people from all over Town- and each had some estimate of what they thought the people would accept as a budget increase: factors such as the State Budget cutbacks which will be reducing on aid to the towns, possibly an increase in the State Income Tax to help balance the State's economic woes; small businesses are feeling the economic crunch and are freezing salaries and cutting back on programs such as insurance co-pay. In addition, the general economy is seeing a large increase in gasoline and fuel oil costs which will affect us all.
The feeling of the Board of Finance was that until they know what is being requested in all the
individual budgets, they cannot come to any conclusion on what to present at the Public Hearing. It was the consensus of the members that the Board of Finance Chairman contact the Chairman of the Board of Education to try to determine how best to present a reasonable and acceptable plan to address the needs of the Town as a whole, hopefully, keeping budgets below a 6% increase, keeping in mind that the Board of Finance will be looking for minimal increases.
The Board of Finance then discussed the proposed budget handout that was distributed with the Agenda as well as other background information including comparison charts showing the % of increases between preliminary and final budgets, possible budget adjustments in the Town Budget, a ten-year comparison of budget adjustments, computation of the current levy, expenditures by budget and Referenda Results since 1965. The Town Manager reported how these charts had been used in past years to help the Board of Finance determine what was a reasonable budget.
A copy of the prior year's handout for the Public Hearing was enclosed. The Town Manager stressed that budget figures at this time are preliminary and it is anticipated that they will change within the next ten days.
VI. NEW BUSINESS
02/03-15 -Supplemental Appropriation: $30,000
Sycamore Hills Pool Painting -Glenn Marston, Director of Recreation and Parks attended the meeting and reported that three years ago we had the pool re- painted - we had a local contractor do it according to specifications. We felt that everything checked out. In about a month we discovered some flaking of the paint. We called the contractor in and he immediately responded; he came back the following spring, sandblasted it and re-painted it. About mid point last year we started again to lose the second coat. Mr. Marston reported to the Town Council the need to make repairs before the scheduled Memorial Day opening. He advised the Town Council he is still planning to work with the contractor but because of the time involved Mr. Marston feels it is necessary to start making preparations. In
anticipation, he has obtained estimates of cost to repair both pools which amount to $34,500 or $35,000. He can probably cover the cost to repair the tot pool which is $5,000 but there is not sufficient funds to cover the balance of$30,000. Therefore, he went to the Town Council and asked them to appropriate $30,000 from Recreation Special Revenues, Undesignated Fund Balance. He is looking to obtain bids from a qualified pool installer to make the necessary repairs. He did not believe that more than just the painting was involved. After further discussion, Mr. Marston explained that he will continue to work with the original contractor, but because of the time frame he feels it is necessary to do the ground work as soon as possible, to complete the job before the opening of the pools on Memorial Day.
The Town Manager certified there are sufficient undesignated fund balance resources to finance the sum of $30,000 from Account #09-0390-43913, Recreation Activities Fund, Undesignated Fund Balance.
On a motion made by Mr. Hooper, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $30,000 from Revenue Account #09-0390-43913, Recreation Activities Fund Undesignated Fund Balance and Account #09-8700-58000, Recreation Activities Fund, Other Financing Uses, Interfund Transfer-Out to Expenditure Account #02-0390-43918 Capital Projects Fund (Facility & Equipment) Other Financing Sources, Interfund Operating Transfers In and Account #02-4829-53329 Capital Projects Fund (Facilities & Equipment Town CIP -Facilities, Sandblast and Paint Sycamore Pool.)
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
02/03-16 -Review and Discussion M. H. Rhodes Property -The Town Manager reported on a preliminary schedule for the proposed purchase of the M. H. Rhodes property, as described in detail in a memo from Mrs. LaMonica, Town Clerk. The dates listed
for each of the five steps are required by law to accomplish a scheduled Town Meeting on March 26, 2003. He reported the closing will be 30 days maximum after approval by the Town Meeting. He further reported we are considering a five-year note; the first two years being interest only payments and then probably rolling that note over in the third year into the proposed bond issue for the High School, potentially the Library, and some ball field improvements at Fisher Meadows. Dennis Dix, our Financial Advisor will attend the Town Council Meeting on February 27th, to which the Board of Finance is invited, to discuss paying for these Capital projects. He will present a Debt Service analysis on how we plan to fund these Capital programs in future budgets.
There will be a need to get the purchase/sales agreement approved by the Town Council and the Board of Finance at a Special Meeting, after which the Town Council will then have to issue a call to Town Meeting tentatively scheduled for March 26th. The vote at the Town Meeting will decide whether we will move ahead with the purchase. Assuming we do, we plan on borrowing the money from the General Fund, Undesignated Fund Balance, and repaying this in 30, 60 or 90 days later from the note sale. One of the conditions of the owners is to get this money as quickly as possible. There is no action required by the Board of Finance tonight, but there will be a need for a special meeting to approve the Resolutions and another meeting after the Town Meeting to authorize the appropriation from the General Fund, Undesignated Fund
Balance.
The Board of Finance asked questions and discussed the procedures, for their enlightenment, on the method of selling the notes (the Town Manager reported they will be sold by a normal bidding process). The Town Manager reported on the actual cost to the Town, including costs for demolition, legal fees, financing costs, and other incidental costs, all of which will tota11.5 million dollars. He reported the Town is taking on the liability for remediation of environmental problems that might occur during the demolition.
VII. MISCELLANEOUS -Mr. Gugliotti reported he would like to express his compliments to the Town road crews; they did a great job on the roads these last couple of storms. The men in the trucks were out there, they were smiling and waving. A few days after the storm they came back and pushed the snow back from the intersections to give us a better site line. The Town Manager reported we are about $20,000 over budget of $180,000 figuring materials and overtime. This will have to be adjusted at the end of the year.
VIII. OTHER BUSINESS -The Town Manager reported that at the next meeting we plan to have the auditors to go through the Audit Report and we will also be recommending reappointment. We've got the GASB 34 compliance issue in the 02/03 year and we want to keep the same auditors.
Copies of the Public Hearing Hand-out were included in the folders so that the Board could make modifications, if they so desire. The Town Council will be preparing a power point presentation for the April 7th Budget Hearing which will be included in the hand-out along
the hand-out. The Board indicated they want the power point presentation included in the hand-out. By handing this out tonight for review, the Board of Finance can make revisions if they wish to finalize the presentation before the Town Meeting. This will be discussed at the March 24th meeting.
X. ADJOURN -On a motion made by Mr. Hooper, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:25 P.M.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:
Elinor Burns, Clerk
| 
