BOARD OF FINANCE
MINUTES
MARCH 28, 2005
I. CALL TO ORDER - The Meeting was called to order at 7:30 pm by Chairman Tom Harrison in the Selectmen’s Chamber, Town Hall. Members present: Jeff Brighenti, Tom Gugliotti, Bill Hooper, Mike Monts, Jim Speich, Mark Zacchio and Cathy Durdan.
II. PLEDGE OF ALLEGIANCE – Led by Mr. Speich.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEDING MEETING – Copies not attached – to be considered at the next meeting.
V. OLD BUSINESS
04/05-01 – FY05/06 Budget – The Chairman reported that copies of the budget to be considered for 2005/06 had been distributed to members. The Board of Ed budget had been distributed in February. Mr. Harrison asked the Town Manager about the questionnaire submitted to both Board of Ed and Town Council and asked if any further responses had been received or commented on. The Town Manager reported his only comment was that we need to start defining our terms. It is quite difficult to respond to “what is a performance measure”. He would be happy to provide information to the sub-committee, or work with them, or have Peggy work with them. Mr. Monts was pleased with what has been accomplished in pointing out that we are all looking for
places to trim expenditures. He made suggestions to refine the process. The Board feels the information provided by the Town Manager and the Director of Finance was very helpful.
The Chairman reported that tomorrow, March 29th, the Avon Chamber of Commerce will initiate a discussion on the upcoming budget and has invited members of the Board of Education, Town Council and Board of Finance to attend. Bill Hooper came in.
The Town Manager reported he distributed a draft of the Town Meeting Hand-out, it’s also on the Website with the date of the Public Hearing. We have not received the Board of Education’s Handout; we used to combine these but about two years ago, it developed they would do their own independently. You have the Board of Finance and the Town Council on the Website and in hard copy.
VI. NEW BUSINESS
04/05/16 – Supplemental Appropriation: $15,856: Street Light Reimbursement
The Town Manager reported we had received a check in the amount of $15,856 for overcharges by CL&P to the Town for prior year’s street lights. During an audit it was determined there were a number of newly installed street lights that had not been included initially. We are now being asked to re-submit this amount for the amount due on new street lights that were not included. It is difficult to keep track of the actual number when we are periodically ordering new lights that are not always installed when we request..
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 by increasing REVENUES General Fund, Other Local Revenues, Refunds & Reimbursements, Account #01-0360-43612 in the Amount of $15,856 and increasing APPROPRIATIONS General Fund, Street Lighting, Electric Account #01-2505-52175 in the amount of $15,856 for the purpose of recording the refund check from Connecticut Light and Power to offset the anticipated increase in street light account.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich, Zacchio and Ms. Durdan
voted in favor.
04/05-17 – Guidelines for Issuing Municipal Debt: Dennis Dix
Dennis Dix, the Town’s Financial advisor distributed a report on “Statutory
Guidelines for Issuing Municipal Debt”. The report was broken down to explain
short term borrowing, (known as Bond Anticipation Notes) which can be one
year periods, renewed up to eight years, and also for Permanent Financing.
Mr. Dix we look at 20 years as a maximum bond length; however, our philosophy in the past has been to be very aggressive on debt service. This all comes back to RATING, the AAA rating. Our aggressive retirement of debt service is part of the hold for AAA. Rarely has Avon taken the full 20 year life. We’re probably going to put 30 million dollars in debt in the next several years. It is the advisor, the Town Council, the Town Manager and the Board of Finance’s responsibility to develop the strategy. The good thing about this is that we retire our debt early so we are always developing a “debt capacity”, as old debt falls off, we can replace it.
Several questions were raised and answered and an Executive Summary
was submitted showing details that must be included in order to go to bonding.
Several graphs were included showing all Town bonding and their retirement
schedules. The decision of how to bond comes when we have to anticipate the financial climate of the country at the time we anticipate bonding. The Town Manager then explained the bidding process, Federal and State reimbursements, balance needed to be bonded and how that debt will be managed. It is a cooperative effort.
VII. OTHER BUSINESS – Mr. Gugliotti commented on the Auditor question – I assume you would like to have our score sheets. Ms. Colligan reported we have to the end of the month and then we schedule the interviews. When she gets the scores back, she will make a composite sheet and you will all get copies of where the standings are. To date, it seems everyone seems to feel the same about both firms, and they are both coming in to be interviewed.. Ms. Colligan feels it might sway your choice after you have personally interviewed each candidate. It was decided to advise the Board when interviews are scheduled.
VIII. ADJOURN – On a motion made by Mr. Zacchio, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:30 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
03-28-05 Minutes
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