BOARD OF FINANCE
MINUTES
September 25, 2006
I. CALL TO ORDER – The meeting was called to order at 7:30 p.m. by Chairman Tom Harrison. Present were members Margaret Bratton, Cathy Durdan, Tom Gugliotti, Bill Hooper, Mike Monts and Jim Speich.
II. PLEDGE OF ALLEGIANCE – Mr. Hooper led the audience.
III. COMMUNICATION FROM AUDIENCE – None.
IV. MINUTES OF PRECEEDING MEETING: August 28, 2006
On a motion made by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance accept the August 28, 2006 meeting minutes , as amended to the rewording of Paragraph III Communication from Audience, to read as follows:
“David Goldsholl, 57 Old Kings Road asked if we would discuss the fiscal impact of the pending Referendum on the Avon High School Renovations/Addition on the budget plans for the Town assuming it is accepted. Chairman Harrison explained that the Council is meeting downstairs to consider whether to take a vote on a Resolution to add another item to the agenda for the Referendum. If they vote yes they will come up here to advise us and we will discuss the same Resolution. If we pass the resolution it’s then the additional amount will be on the ballot with the High School Renovations/ Addition motion. There will be a Town Meeting on Thursday evening, September 7th at which there will be presentations from the various entities involved. At that
time, the public will ask questions and make comments on the procedure. If the Referendum fails, the Board of Education will have to address the educational impact on the students and therefore, the Town. We will not be discussing those questions tonight – all we’ll be voting on tonight is whether to adopt the Town Council’s recommendation.”
Mmes. Bratton and Durdan and Messers. Harrison, Gugliotti, Hooper, Monts and Speich voted in favor.
V. OLD BUSINESS
05/06-24 Review and Discussion: FY 07/08 Budget.
The Chairman indicated in view of the upcoming Referendum and Budget process and how it will affect our bonding ability, the Boards will need to be very sensitive. He is
recommending that a sub-committee be appointed to review how emergency/ time sensitive spending from Surplus can be monitored to be sure we don’t decimate our Undesignated Fund Balance. He is recommending that a policy to monitor this balance and/or to develop a method to return such amounts to the Undesignated Fund Balance from monies/grant be developed. This can be discussed further under New Business, item 06/07-15.
06/07-02 Request for Supplemental Appropriation of $119,500 for a Parking Lot at Buckingham Fields
Mr. Harrison reported this item will also affect Item 15 under New Business, the possible development of a Policy on Supplemental Appropriations from General Fund Surplus. In considering this $119,500 request, we don’t have any published guidelines on how we can compensate for requests to use money from Surplus. He feels it will be helpful if we have some benchmarks against which to measure the expense. He asked if the Council had any guidelines and he indicated there was not. He asked Tom Gugliotti if he would be willing to chair a three member committee and if Bill Hooper and Margaret Bratton would serve on that Committee. He feels that two months might be sufficient time to make such a recommendation and draft policy for consideration
The Town Manager certified there are sufficient Undesignated Fund Balance resources to finance the sum of $119,500 to fund the paving of a second parking lot for the Buckingham Road Recreation Area.
On a motion made by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $119,500 .00 from General Fund, Other Financing Sources, Undesignated Fund Balance, Account #01-0390-43913 and transfer Out from General Fund, Capital Improvement Projects, Facilities, Buckingham Road Recreational Area – Playground Development, Account #01-8501-53048 to Capital Projects Fund (Facil & Equip), Town CIP – Facilities, Buckingham Road Recreational Area – Playground Development, Account #02-4829- 53048 and Capital Projects Fund (Facil & Equip), Other Financing Sources, Interfund Operating
Transfers In, Account #02-0390- 43918 in the amount of $119,500.00 for the purpose of funding the second parking lot for the Buckingham Road Recreation Area.
Messrs. Gugliotti, Hooper, Monts, Speich and Mrs. Bratton voted in favor. Mr. Harrison voted No and Mrs. Durdan excused herself because of her active participation with the Recreation Committee who proposed this expenditure.
The Committee then discussed the status of Surplus 6.2%, or $3,557,223 on 6/30/05 as reported by Ms. Colligan and as of 6/30/06 it was $3,484,671 less the $160,168.50 as approved last month, leaving a balance of $3,324,502.50. The Town Manager reported he feels it is important to consider the Town Council’s thinking in forwarding this to you. They are somewhat reluctant to do so given the time frame to get this paving done before winter sets in. Our Fund Balance now is less than it was a year ago at this time and now we’re asking an additional expenditure of over $300,000. We have a revaluation coming up in 2008, which will affect tax bills in 2009. In the past we have been able to build the surplus up to 8% by that time so there will be money to take out to offset the
effects of reval; this amount could be budgeted back into the Capital Budget for next year. An amount of $150,000 has been granted to the Town by the State, which is the amount needed to order the material for the playground. This grant jump-started the thinking to do something in the parking area to provide direct access to the playground from the second parking lot. Mr. Nicholas Seminara, President of PAK spoke to the Board, explaining the procedure which is being considered.
On a motion made by Mr. Hooper, seconded by Mr. Gugliotti, an amendment was proposed as follows:
RESOLVED: That the Board of Finance amend the resolution of the Town Council for $119,500, to keep in mind that the Board of Finance feels this money should be budgeted back to Surplus in the next annual budget preparation, if possible and appropriate.
Messrs. Harrison, Gugliotti, Hooper and Speich and Mmes. Bratton voted in favor of the motion including the amendment and Durdan excused herself from voting, noting that as a member of the Recreation Committee in favor of the amendment she is hesitant to vote for this resolution that the Town Council should be aware of the Board of Finance’s concerns.
VI. NEW BUSINESS
06/07-13 Capital Budget Transfer Request of $18,770.03 for
A Dump Truck and Snow Plow.
On a motion made by Mr. Hooper, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 06/07 budget by transferring from Account #02-4857-522198, Cap. Proj. Fund Property Purchase 267 Country Club Road, Other, in the amount of $18,770.03 to Account #02-4840-53375, Capital Proj. Fund (F&E) Town CIP-Eqip/Dump Truck, PW:Dump Truck for the purpose of
covering the difference of original estimate opposed to bid amount obtained.
Messrs. Harrison, Gugliotti, Hooper, Speich and Mesdames Bratton and Durdan voted in favor.
06/07-14 Capital Budget Transfer Request of $18,800; Co. #1 Firehouse Roof.
On a motion made by Mr. Speich, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 06/07 budget by transferring from Account#02-4857-52219, Cap. Proj. Fund Property Purchase 267 Country Club Road, Other, in the amount of $18,800.00 to Account #02-4829-53381, Capital Proj. Fund (F&E Town CIP-Equip/AVFD CO#1 Roof Replacement
for the purpose of covering the difference of original estimate opposed to bid amount obtained.
Messrs. Harrison, Gugliotti, Hooper, Speich and Mesdames Bratton and Durdan voted in favor.
06/07-15 Review & Discuss: Policy on Supplementary Appropriations – Please see Discussion on Page 2 of these minutes.
VII. MISCELLANEOUS – The Chairman reminded the members and the public to vote on October 11th.
VIII. OTHER BUSINESS – None.
IX. ADJOURN
On a motion made by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:40 P.M.
Messrs. Harrison, Gugliotti, Hooper, Speich and Mesdames Bratton and Durdan voted in favor.
Respectfully submitted.
Thomas A. Gugliotti, Secretary
Attest: Elinor Burns, Clerk
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