BOARD OF FINANCE MINUTES
November 24, 2003
I. CALL TO ORDER – The meeting was called to order at 7:30 p.m. by Chairman Harrison. Present were Messrs. Gugliotti, Hooper, McGuff, Speich and Zacchio. Mr. Monts was absent.
II. PLEDGE OF ALLEGIANCE – The Pledge was led by Mr. Zacchio.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEDING MEETING – 09/22/03 On a motion made by Mr. Zacchio, seconded by Mr. Speich, it was voted:
RESOLVED: That the minutes of the September 22, 2003 meeting be accepted as submitted.
Messrs. Harrison, Hooper, McGuff, Speich and Zacchio voted in favor. Mr. Gugliotti abstained, absent from the meeting.
V. OLD BUSINESS
03/04-03 Review and Discussion: FY04/05 Budget: Revaluation
Status Report: Harry DerAsadourian, Assessor.
Mr. DerAsadourian reported approximately 7,300 Assessment Notices were mailed out, not including tax exempt properties this past week and it is anticipated that approximately 225 challenges will be made by property owners who do not think our figures are corrected, or who do not understand the process. Most of these will be informational and the rest will need some type of action. After that the information will be signed in to the Grand List by the end of January. By this time, the people who did question the assessment will be notified by letter as to the outcome of their appeal. If they wish to continue and go to the Board of Assessment Appeals they can. The filing deadline for the Board is February 20th and they will hold their meetings in March. Hopefully, they will
complete their duties in March and at that point we will know what the adjusted Grand List is. As he stated at a prior meeting he feels the increase in the Grand List will be somewhere in excess of two billion dollars, and he still feels that way.
Mr. DerAsadourian distributed a table outlining how the “effective tax rate” is determined and what criteria are used such the Grand List year, the net Grand List, the fiscal year applicable, the mill rate for that year and the assessment sales ratio; that is what percentage of the sales price did the assessment represent and then the “effective tax rate”. The current effective tax rate is roughly 1.58.6 and that’s been decreasing since 1999. It has not fluctuated greatly in the past few years and he doesn’t feel it will change much during the coming year.
After responding to questions from the Board, Mr. Harrison thanked Mr. DerAsadourian for his time and expertise.
The Chairman reported at this point he would like to segue into the budget question. He did ask that each of you think about following-up on our August letter to the Town Council and the Board of Education and you suggested that discuss some sort of non-binding target figures for the dollar increases for the next budget. It was decided we not do that before the November meeting. He would like to get some feeling if we are still leaning in that direction. He feels with the increase in valuations, there’s going to be the opportunity for mischief making in the sense that people will want to “recapture” whatever growth there is in the Grand List and use that growth to raise more cash and by the same token lower the mill rate. Bill Hooper stated when we first get to
the Town Meeting, we should explain exactly what our mill rate would be if we had no tax increase whatsoever. He feels it is important that the voters know this. As far as setting guidelines, several towns around are setting guidelines, making suggestions, but it didn’t really work out that well last year. He’s like to hear what everyone else has to say.
Mr. Gugliotti, I think Bill’s observations are good ones – it wasn’t perceived to be a good suggestion on our part. I think I was driven by misapprehension by those to whom we were speaking. We need to make it know we are by no means changing the charter or usurping anyone’s authority; we were only expressing a sense that this was the feeling of the people. I think we should do it again, but if possible despite the reception we got last year, I think we should spiffy up our approach to it again saying “this is what the mill rate’s going to be or what your tax increase will be. We are only saying our observations taking into account the history; this is what we think will be acceptable. We should advise the Council and the Board of Ed that they should do
what they have to do, but when we get it this is the mind-set we have.
Mr. Harrison would like to have the names and phone numbers of chairs of the Boards of Finance in the Valley towns that we interact with. I would like to find out just how they did it. He reported we are going to have a three Board meeting in January with Dwight Johnson, the Town Attorney, will attend and go over under State Laws and the Charter, what the duties of the Boards, what authority do they have, etc. He feels this will be helpful for all three Boards.
The members agreed that it should be very helpful to all three Boards to set guide lines at what we feel will be an acceptable budget to the voters. The Board requested information on the past 10 or 12 years, a comparison of dollar increases year by year, the operating budgets of the Town and the Board of Education and also the change each year in the Capital Improvement Program. He requested this information be on the approved amounts, not the requested amounts. This may show an historical trend which may be helpful in our deliberations. The Town Manager reported he could develop some information that could be helpful. After further discussion, it was agreed that an additional workshop meeting, prior to our next regular meeting, would enable this Board to get this information digested
and transmit it to the Council and the Board of Education just what we feel would maintain our services while keeping our expenditures within an acceptable level. The Town Manager reported with the help of the Director of Finance and the Assessor, he could have information for you by the 15th of December if this is acceptable to the Board. The members concurred that a special workshop meeting should be held on Monday, December 15th at 7:30 p.m.
Mr. Harrison commented that after this budget, he wondered if it would be a good idea for all three Boards to meet in June to discuss the year coming up – are there things we should be looking at and that we should be discussing before budgets actually get developed. It seems that we use the past year as a base and build on it –are there some items that aren’t doing what they were intended to do and could be changed. A concern is about funding computers. A discussion before the fact may produce some workable resolutions.
After a detailed explanation of the timing of the budget process, the Town Manager reported our budget is usually delivered to the Board the third week in January. The Board of Ed, by Charter, has to have their budget to the Town Council by February 15th. He feels January would be Okay with the Council but I think it might be a little late for the Board of Ed. He would think December would be a more appropriate date, if you could. The Board concurred that a workshop be scheduled for Monday, December 15th, in the Avon Room and we’ll target our regular December meeting to come up with a non-binding target.
VI. NEW BUSINESS
03/04-09 Supplemental Appropriation: $4,000 Law Enforcement
Block Grant. The Town Manager reported the Town has been approved to receive a $4,000 Law Enforcement Block Grant. The Chief of Police is recommending these funds be transferred to allow the purchase of network printers to replace the failing individual printers.
On a motion made by Mr. Speich, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY03/04 Budget by increasing
General Fund, Intergovernmental, Law Enforcement Block Grant,
Account #01-0330-43373 in the amount of $4,000 and increasing
APPROPRIATIONS General Fund, Administrations, Other Equipment Account
#01-2101-53319 in the amount of $4,000 for the purchase of Network printers.
Messrs. Harrison, Gugliotti, Hopper, McGuff, Speich and Zacchio voted in favor.
03/04-10 Transfer of Funds for Capitol Purchase, $9,950,
Emergency Generator - The Town Manager reported the Town is requesting the transfer of residual equity amounts be transferred so the Town can purchase the emergency generator for the Huckleberry Hill Site.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY03/04 Budget to approve the
Transfers of appropriations in the amount of $3,070, from Account #02-4859-53348, Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, AHS Field Project and $6,880 from Account #02-4859-53328, Capital Projects Fund (Facil & Equip) BOE CIP-Facilities, Port. Classrooms (RBS-4, AMS-3) to Account #02-8700-58000, Capital Projects Fund (Facil & Equip), Other Financing Uses, Interfund Transfers-Out and an operating transfer in the amount of $9,950 to Account #01-0390-43918 General Fund, Other Financing Sources Interfund Operating Transfers In and increase Account #01-2301-53319, General Fund Communications, Other Equipment, for the purpose of funding a generator at Huckleberry Hill.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Speich and Zacchio voted in favor.
03/04-11 Approve 2004 Meeting Schedule – The Board made two adjustments to the budget on schedule and requested a corrected schedule be available on the December 15th meeting for approval.
VII. MISCELLANEOUS – None.
VIII. OTHER BUSINESS – None.
IX. EXECUTIVE SESSION - On a motion made by Mr. Zacchio, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:20 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Speich and Zacchio voted in favor.
On a motion made by Mr. McGuff, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance come out of Executive Session at 9:20 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Speich and Zacchio voted in favor.
X. ADJOURN – On a motion made by Mr. Speich, seconded by Mr. McGuff, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:20 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Speich and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:
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