BOARD OF FINANCE
REGULAR MEETING MINUTES
January 27, 2003
I. CALL TO ORDER -The regular meeting of the Board of Finance was called to order at 7:30 pm. Members present: Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio; Mr. Hooper was absent.
II. PLEDGE OF ALLEGIANCE -Mr. Monts led the Board in the Pledge of Allegiance.
III. COMMUNICATION FROM AUDIENCE -None.
IV. MINUTES OF PRECEDING MEETING -December 18, 2002
On a motion made by Mr. Monts, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the December 18, 2002 minutes, as submitted.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor.
V. OLD BUSINESS -None.
VI. NEW BUSINESS
02/03-13 - Supplemental Appropriation, $80,695; Roof Repairs Roaring Brook School.
Gary Franzi, Board of Education Director of Finance, attended the meeting to address the need for immediate repairs to the Roaring Brook School roof as explained in a detailed recommendation outlining the problems to be addressed. The Town Council has recommended that the repairs be accomplished as soon as possible as there is water damage penetrating the roof area and valley above the main corridor library area. A supplemental appropriation is being requested to accomplish the following:
Cost of roof repairs $19,595
Floor covering replacement 33,100
Asbestos Removal (existing tile) 10,000
Contingency for possible deteriorated decking 18.000
TOTAL $80,695
Mr. McGuff complimented Mr. Franzi on the detail included in his report, which clearly defined the problem for the Board.
The Town Manager certified there are sufficient Undesignated Fund Balance resources to
finance the sum of $80,695 from Account #01-0390-43913 General Fund, Other Financing
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Sources, Undesignated Fund Balance to repair the roof and replace the a floor at Roaring Brook School.
On a motion made by Mr. McGuff, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed
$80,695 from Account #01-0390-43913 General Fund, Other Financing Sources, Undesignated Fund Balance to General Fund, Capital Improvement Projects Facilities, RBS Roof Repair/Replace Indoor Floor, Account #01-8501-53325 and Capital Projects Fund (Facilities & Equipment), Board of Education CIP-Facilities, RBS Roof Repair/Replace Indoor Floor, Account #02-4859-53325 for the purpose of Roaring Brook School Roof Repairs and floor covering replacement.
A parent of a Roaring Brook School student came in and asked if she could thank the Board for acting promptly on this problem and to state that the parents are appreciative of this effort.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor.
02/03-14 -Review and Approve: 2003/2004 Meeting Schedule.
The Chairman requested including the FY03/04 Budget Work Session schedule. After discussion with the Town Manager, the Board of Finance agreed to hold their first Workshop to set budget goals and objectives on April 9, 2002. Two additional workshops will be needed to work with the Town Council and Board of Education, which could be scheduled for April 10 and April 14, 2003, with April15 reserved as a back-up date, if necessary.
On a motion made by Mr. McGuff, Seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance approve the Schedule of Regular Meetings for 2003 and January of 2004, as well as the schedule of Budget Workshops for the 2003/2004 Budget deliberations as attached and made a part of these minutes.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor.
Vll. MISCELLANEOUS
The Board discussed setting guidelines for presentation of the budgets, specifically in regard to
the work shop meetings.
On a motion made by Mr. Harrison, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance moves that as for the work shops schedule, we proceed on the following basis: Wednesday, April 9 -Work Shop will consist of discussion among the members of the Board of Finance giving general objectives and goals as to where we think the recommended budget should be. At the end of that discussion, we will have a limited period, perhaps 30 minutes for public comment.
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Second, on Thursday April 10th, we will have another work shop to which both the Board of Education and the Town Council will be invited; we will present to them our conclusions from the previous evening; we will listen to their discussion points. We will again have a limited period of public comment at the end of that Session.
We will then have a third work shop on Monday, April 14th. We will invite the Board of Education and the Town Council. At that meeting we will adopt our final recommendations that will be presented to the Town Meeting to be adjourned to Referendum. We will not receive communications from the public at that meeting.
April 15th will be scheduled as a back-up date if necessary.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor.
VIII. OTHER BUSINESS -The Town Manager reported the Town Council is doing due diligence on environmental studies on the M. H. Rhodes property and hopes to have a report prepared for their meeting on February 6th. He is anticipating that at the February 6th meeting, if they wish to pursue the opportunity to purchase property, there will be a counter offer made. The Town Council has also been getting estimates for demolition and removal of the existing building as well as getting estimates on financing costs. Dennis Dix, our financial advisor, is recommending we fund the cost with short term, 5 year notes. In our favor, the financing costs are in the very high four figure range in terms of the legal opinion and the sale. The Town Manager anticipates having information by the next Town Council
meeting that will include demolition costs, further environmental remediation, cost of borrowing and anything else that needs to be included. This will probably come back to the Board of Finance and Town Meeting. Although we will need Town Meeting approval to proceed; we will not need a referendum.
The Town Manager reported the 2004/2005 budget was submitted to the Town Council on
January 25th; the final budget is on his desk and it will be available by the end of this week.
Some highlights: the proposed budget will reflect changes in State Grants -we anticipate we will lose somewhere in the neighborhood of $150,000 to $300,000 in Grant funds. The focus of the cuts is on the Town's side; the Legislature and the Governor have said they do not want to cut the ECS education related programs; our Town Aid Road account will be down at least $100,000; reimbursement for manufacturer's equipment will be down; the Pequot/Mohican grant will be down. The revenue side of the budget will probably reflect that we're reducing interest earnings $100,000 initially -last year we went from $900,000 (this is money we earn on tax money that's invested until we spend it) and on Capital Project money and everything else. Interest on these assets was dropped last year from $900,000 to $450,000 and
this year you'll see another $100,000 dropped initially to $350,000. We're getting interest rates in the very low single digits, 1% to 2% range. There's some talk they may even drop below 1 %. This is not good!
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On the positive side, the Grand List is up about 2.98%. That would generate in the neighborhood of 1.2 to 1.3 million dollars of additional revenue at the same tax rate of 27.3 mills.
Our grant funds received for school construction continues to decline because we're paying off the bonds and the State has changed the way they fund school construction. Most other revenues are flat. The total Town budget at this time going to the Council is a 13.1% increase compared to last year's 16.8 % increase. The biggest increase is in the Capital Improvement Program, which is up $1,750,000 dollars. Last year the Capital Program was up 79%, this year it's up 91%. There's a lot that will have to be trimmed. Initially included are $400,000 for Building #7 renovations which was deleted last year; there is the third and final payment on the new ladder truck for $250,000; the Avon High School Gym floor replacement is $142,000 for the Board of Ed; there's a possibility that the floor replacement can be wrapped into the High School addition project which is forth-coming. There is $75,000 in schematic work on the Library expansion which may have to be delayed. Two dump trucks at
$130,000 each are being requested, we may have to delete one of those. We have to include the lighting for the Little League Field for $80,000, second year for the hydraulic lift replacement for the Town garage at $75,000. Road Program is $460,000. Revaluation is $158,000. Debt Service is up 7.32%.
X. ADJOURNMENT
On a motion made by Mr.Zacchio, seconded by Mr. McGuff, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:10 p.m.
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:
Elinor Burns
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