BOARD OF FINANCE
MINUTES
August 23, 2004
I. CALL TO ORDER – The meeting was called to order at 7:30 p.m. by Chairman Tom Harrison. Present were members Catherine Durdan, Tom Gugliotti, Mike Monts, Jim Speich and Mark Zacchio. Bill Hooper arrived later in the meeting.
II. PLEDGE OF ALLEGIANCE – At Chairman Harrison’s request, Ms. Durdan, our new member, led the Pledge.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEDING MEETING – 7/26/04
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 July 26, 2004 meeting as amended to read under “New Business”, line 5 to read “defeated two budgets” and same item, line 7 to read “having the Chairs of three Boards” work together.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan voted in favor.
V. OLD BUSINESS
04/05-01 Review & Discussion – FY05/06 Budget Process
The Chairman reviewed the comments from the July 26th meeting regarding setting a target or goal that would, of course, not be binding; there was a sense that we not tie the target or goal to any fixed method. In response to our request, the Director of Finance submitted some additional information to us which was discussed by the Board. The Town Manager discussed the background of the new charts, especially regarding the Grand List figures and how they will impact the FY05/06 budgets. He reported on the major appropriation from Undesignated Funds to buy property on Sunnybrook Road and before you this evening is another substantial appropriation from surplus to buy property on Country Club Road, both parcels adjacent to the Library Property. When and if we move ahead on the Library
project in three or four years, which will put us somewhere in 2007, 2008 or so. We are proposing the purchase of these properties because we have been approached by the property owners to sell. If this appropriation is approved tonight, this and the Sunnybrook Road property will probably be the two largest dollar commitments that the Town would be making. The Town Manager reported the Conveyance Tax money has been renewed for another year and this will help offset the $500,000 we borrowed from surplus in this past budget. We also have another source of revenue from the Thompson Brook School property, plus or minus, once it is closed out. It is anticipated the Town Council will close out that building committee in either October or November, and we will then have an accounting of the project to determine if there are any leftover funds for dispersal. The Chairman reported he is not looking for this Board to make a decision tonight, but with the
benefit of the charts and information received he feels we should be able to come to a decision on some sort of guidelines in September so we can inform the Town Council and the Board of Education very early in the budget development process.
The Town Manager commented on a letter from Thomas Mortimer regarding the Board of Education’s negotiations be made public; however, ss 10/153, any agreement is submitted to the Town. The Town Council then has 30 days to secure an opinion from a Town Meeting. If we voted it down, we then would go to binding arbitration so he does not feel this is a viable activity.
VI. NEW BUSINESS
04/05-02 Appropriation from General Fund Balance $ 368,700
Purchase of property, 267 Country Club Road
Harry DerAsadourian, Town Assessor, attended the meeting to answer questions from the Board. The Town Manager reported we had an appraisal done; there was some work that they had done on the property relating to hazardous materials. We have a purchase/sale agreement signed that is contingent on Board of Finance approval tonight and also on contingent on approval by Public Hearing, which will be held on August 31st. If this is approved tonight, and after approval on August 31st, the Town Council will move ahead to purchase the property. The funding for this will come out of Surplus; which will be restored by the Conveyance Tax as well as the Thompson Brook School Fund Balance and eventually bonding or borrowing on the Library Project. In response to a
question from the Chairman, Ms. Colligan, Director of Finance, reported on the current status of the Undesignated Fund Balance which will be at about 5.5%. Mr. DerAsadourian reported on considerations of the assessment and terms of the purchase/sale agreement.
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The Town Manager certified that there are sufficient Undesignated Fund Balance to finance the sum of $368,700 from Account #01-0390-43913 for the purchase of property at 267 Country Club Road.
On a motion made by Mr. Gugliotti, seconded by Mr. Speich, it was voted:
RESOLVED: The Board of Finance hereby amends the FY04/05 Budget to approve transfer of
appropriation in the amount $368,700 from Account #01-0390=43913 General Fund, Other Financing
Sources, Undesignated Fund Balance and Account #01-8700-58000, General Fund, Other Financing
Uses, Inerfund Transfer-out to Account #02-0390-43918, Capital Projects Fund ( Facility &
Equipment), Other Financing Sources, Interfund Operating Transfers In and :
Account #02-4857-52183 –
Capital Projects Fund (Facil & Equip), Property Purchase 267 CC Rd Legal Fees 500;
Account #02-4857-52219 -
Capital Projects Fund (Facil & Equip), Property Purchase 267 CC Rd Other: 62,000;
Account #02-4857-52239 -
Capital Projects Fund (Facil & Equip), Property Purchase, 276 CC Rd Materials Other 6,200;
Account #02-4857-53344 –
Capital Projects Fund (Facil & Equip), Property Purchase, 276 CC Rd Land & Building 300,000;
$368,700
For the purpose of funding the purchase of land and building at 267 Country Club Road and estimated
associated environmental, demolition and site costs.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan voted in favor.
VII. EXECUTIVE SESSION: Labor Negotiations, Property
Purchase/Sale Negotiations
On a motion made by Mr. Speich, seconded by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:55 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan voted in favor.
On a motion made by Mr. Gugliotti, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance come out of executive Session at 9:40 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan voted in favor.
VIII. MISCELLANEOUS
The Town Manager reported that the Town Council has approved a Budget Schedule for the 2005/2006 budget. Copies are enclosed with tonight’s Agenda. He reported there are copies of two letters the Town Council had sent, one to Bob Myers, Chairman of Planning and Zoning to consider comments made regarding development of Open Space in the Town, one to the Board of Education regarding potential of sharing services. The Council wanted feedback for the Board of Ed in regard to establishing a Facility Maintenance Study Commission that was created in 1997 and worked for about 18 months looking at Building and Grounds and other activities. They wanted to include financial operations and purchasing.
He reported earlier this year we voted to extend our engagement with Kostin, Ruffkess, our auditors, to include the 03/04 budget year. They have already started work on this. We also felt we should go out to look for a new auditor. This will probably be on your September Agenda. I will have background material for you on the process and schedule for selecting an auditor. We should try to get this completed by the beginning of the year or shortly thereafter.
IX. OTHER BUSINESS – None.
X. ADJOURN
On a motion made by Mr. Zacchio, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:10 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan voted in favor.
Respectfully submitted
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
08-23-04 BOF Minutes
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