BOARD OF FINANCE
MINUTES
APRIL 26, 2004
I. CALL TO ORDER – The meeting was called to order by Chairman Tom Harrison at 7:30 p.m. in the Selectmen’s Chamber, Town Hall. Also present were members Tom Gugliotti, Bill Hooper, Steve McGuff, Mike Monts, Jim Speich and Mark Zacchio.
II. PLEDGE OF ALLEGIANCE – Chairman Harrison led the Pledge.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEDING MEETINGS: 03/22, 04/13 and 04/15/04
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the March 22, 2004 meeting, as submitted:
Messrs. Harrison, Gugliotti, McGuff, Monts, Speich and Zacchio voted in favor. Mr. Hooper abstained, absent from the meeting.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the April 13, 2004 meeting, as amended to indicate “Mr. Hooper feels 4.9% would be acceptable.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance accept the minutes of the April 15, 2004 meeting, as submitted.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
V. OLD BUSINESS – Mr. Harrison asked if any members have received any information on the budget? It was the consensus of the Board that most feelings appreciate the cooperation of the Boards, and especially the cooperation on the part of the Board of Education.
Mr. Harrison read letters from V. Santos and also from Dorine and Steve Russo who attended our workshop on Tuesday night. They have a statement “in my opinion we are born with free will. If one can’t afford their community, they should go elsewhere. Why make a community suffer at a person’s hands because they are too stubborn and prideful to make a change in their life,”
VI. NEW BUSINESS
FY02/03-16 Year End Encumbrances, Transfers and
Supplemental appropriations
Director of Finance, Peg Colligan, attended the meeting to comment and answer questions on the
Presentation entitled “Final Fiscal Year Transactions FY2002/2003”. The Town Manager reported most of the transfers relate to personnel turnover and overtime expenditures. The Supplemental Appropriations are also varied and represent small State and Federal Grants. We also have transfers and balances of Designated Funds which are outlined.
Ms. Colligan reported the volume of transfers increased in activity and in dollar amounts, which means that we have to go through all line items to cover budget variances. For all the special revenue funds and any capital project funds, we use either funds that came in on reimbursement, such as State and Federal Grants, or money from other projects that will revert to the General Fund. The only time we went back to Fund Balance was to supplement some road projects which were itemized under LOCIP. She explained that the presentation booklet is broken up into Categories A –Transfers & Encumbrances; B – Supplemental Appropriations – General Fund; C – Supplemental Appropriations – Other Funds; D – Transfers and Fund Balance
Designations; and E – Appropriations from Undesignated Fund Balance – all Funds. This report is attached and made a part of these minutes.
Ms. Colligan explained the resolutions in each section allowing the appropriate transactions, the reason or reasons necessitating the transfers, and the explaining Resolutions.
The Town Manager certified there are sufficient undesignated General Fund resources to make the necessary transfers for FY 2002 – 2003, as listed in the presentation.
On a motion made by Mr.Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance approve year end transfers as presented by the Director of Finance, and recommended by the Town Manager as noted in a memorandum to the Town Manager, from the Director of Finance, dated February 27, 2004.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
FY 2003/2004-17 – Acceptance of Audit Report for FY 02/03
Mr. Jim Lyons from Kostin, Ruffkess, and Town Accountant Charles Lucas attended the meeting to respond to questions and comments. Mr. Lyons reported this is a big year for the audit; GASB (Government Accounting Standards Board) Statement 34 has been implemented. There are no exhibits; there’s a new management discussion and analysis and there is no footnotes that we had to incorporate. A lot more effort on behalf of the Town and the accounting firm went into this product this year. He explained in detail the new reports required to accomplish the audit
and how they will be used to build comparative statistics in future years. Capital Assets is a new item this year. The Town had to depreciate all their assets this year that this has never been reported before; we now have a schedule of infrastructure, roads, storm drains, etc. Everything is in this report to comply with new regulations.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance accept and approve the audit for the Fiscal Year 2002-2003 as submitted by the auditors.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
The Chairman thanked Mr. Lyons for his report and his explanations. Mr. Lyons left the
meeting.
FY 2003/2004-18 – Appoint Auditor for FY 2003/04
In response to a request from the Chairman, Ms. Colligan reported a comparison sheet showing our current auditor, and past auditors. She is making a recommendation that we appoint the current Auditor, Kostin & Ruffkess to audit the books of the Town of Avon for the fiscal year ending June 30, 2004. We are also recommending that we develop and issue an R. F. P. for auditing services to go out for 2004/05. As of this current year we will have retained Kostin for 10 years as our auditor. If you adopt this recommendation it will be the last year for Kostin under the current contract. They certainly could respond to the RFP.
On a motion made by Mr. Gugliotti, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance appoint the firm of Kostin, Ruffkess to audit the books of the Town of Avon for fiscal year 2003/2004; further that an RFP be developed and issued to go out for 2004/05.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
VII. MISCELLANEOUS – The Chairman called on Mr. McGuff to report on the package developed for the Annual Town Meeting. He reported current calculations resulting from the reval have been included in this budget proposal. He reported on changes that have been made to the presentation and that there is also a practice sheet included with formulas so that each taxpayer can calculate the amount that will be due. Mr. Zacchio reported on a program he has developed so if the old and new assessments figures are listed for any specific property, the computer will automatically compute the amount you will have to pay, showing the impact of revaluation as well as the impact of the budget increase. This computation will reflect real
estate only; cars and other personal property will be affected by the same percentages.
VIII. OTHER BUSINESS – None.
IX. ADJOURN
On a motion Made by Mr. Harrison, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:55 p.m.
Messrs. Harrison, Gugliotti, Hooper, McGuff, Monts, Speich and Zacchio voted in favor.
Respectfully submitted,
Thomas A. Gugliott, Secretary
Attest: Elinor Burns, Clerk
BOF 04-26-04 Minutes
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