BOARD OF FINANCE
MINUTES
March 26, 2007
I. CALL TO ORDER - Chairman Tom Harrison called the meeting to order at 7:30 p.m. in the Selectmen's Chamber, Town Hall. Members present: Margaret Bratton, Catherine Durdan, Bill Hooper, and Tom Gugliotti. Jim Speich and Mike Monts were absent.
II. PLEDGE OF ALLEGIANCE - Led by Margaret Bratton.
III. COMMUNICATION FROM AUDIENCE - None
IV. MINUTES OF PRECEDING MEETING:~ February 26, 2007
Page 1, Item III, line 7, Board of Education President Peggy Roell should be Board of Education
Chair Peggy Roell.
Page 1, Item IV, Section b, clarification of the resolution concerning the workshop schedule:
RESOLVED: That the Board of Finance establish the following schedule for the budget deliberations: the Public Hearing to be held on Monday, April 9 beginning at 7:30 p.m. at the Senior Center; and the Workshops scheduled for Tuesday, April 10 and, if necessary, Wednesday, April 11, to begin at 7 p.m. in the Avon Room.
Item IV, Section c, line 5: change "interest only in the first two years" to "interest-only during
the first two years".
Item IV, Section c, last line of paragraph 2: "If approved by the voters, this would bring the total
of the debt principal to $62,355,000."
Item VI, line 1, add the last name of the Blum Shapiro auditor - "Vanessa Rossitto."
Item VI, Paragraph 2, line 1, correct typographical error - "One area of concern..."
Item VI, 06/07-11, additional paragraph to read:
There was a discussion concerning the Board of Education's budget presentation relating to the disclosure of prepaid state and federal grants. The audit report for Fiscal Year 04/05 recommended, and the Town agreed, that the Board of Education should list the anticipated amount of revenue from that source in its formal presentation. The Board of Finance discussed the issue and asked the Town Manager to arrange a meeting with the appropriate Board of Education and Town officials to discuss the appropriate format to accomplish this goal.
Item VII, line 2, add the word "from" to "The money comes from 2 lawsuits related to the Enron bankruptcy."
Additionally, Mr. Harrison mentioned to Town Manager Phil Schenck that the clerk has mentioned the difficulty of hearing those in the audience as there is not a microphone.
On a motion made by Mrs. Bratton, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance approve the minutes of the February 26th meeting as amended.
Messrs. Gugliotti, Harrison, Hooper, and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS
05/06-24 - Review and Discussion: 07/08 Budget
a. Board of Education Revisions: Prepaid Federal and State Grants
Town Manager Phil Schenck reviewed the results from the discussion that took place at a meeting held on Friday, March 16 regarding the Auditor's comments from the 04/05 audit. It was relating to the Board of Education accounting for their Prepaid State and Federal Grant Funds. It was decided to restate FY06/07 and FY 07/08 Prepaid State and Federal Grants portion of the Board of Education's budget to reflect the increases that have occurred on average over the past five years. Mr. Schenck stated that the auditor reconfirmed the opinion that the Board of Education should be making the adjustments reflecting these changes to the Cafeteria Fund and Federal and State Grants Fund.
The revised matrix of the proposed 07/08 budget was discussed by the Board of Finance members. Mr. Gugliotti pointed out that because of a change in the way information is presented, it will give the Board of Education a $74,000 "bump" with Mr. Harrison confirming that it is to make the numbers reflect a 5.88% increase. Mrs. Bratton asked if there were other ways to do the adjustment. Next year the Board of Education base budget will have the change built into it. There is the question of how to make it clear to the public. The Town Council set a target increase and the Board of Education exceeded that target; but, on a larger base, the figures work out to be a balanced budget with a 6.02% increase overall. The Board of Education is requesting $40,925,391, an increase of $2,274,354. What they are doing in their budget revisions is reflecting what they will be receiving in grants. The Board of Finance may have to deal with some explanatory issues regarding the change in
accounting. In addition, some revenues for the Board of Education have changed as well. The consensus of the Board of Finance members was that the five year "error" should not constitute a "reward" to the Board of Education now. At the Public Hearing, the accounting adjustment will need to be clarified if questions about it are brought up by the audience.
b. April 9, 2007, 7:30 p.m., Public Hearing
Chairman Harrison wanted to make it clear that the budget may be adopted at the Tuesday, April 10th workshop and that the workshop scheduled for Wednesday, April 11 will be held only if necessary.
VI. NEW BUSINESS
06/07-13 - Supplemental Appropriation: $25,000 Board of Education State and Federal Grants Fund
In receipt of a $25,000 Education Technology Infrastructure Grant (January 1, 2006-June 30, 2007) the Board of Education requested a supplemental appropriation to both the revenue and expenditure funds. The Town Council recommended approval from the Board of Finance.
On a motion made by Mr. Hooper, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby amend the FY 06/07 Budget by increasing Revenues State and Federal Education Grants Fund, Intergovernmental, Ed. Tech. Infrastructure Grant, Account #13-0330-43375 in the amount of $25,000 and increasing Appropriations State and Federal Education Grants, Board of Education, State Grants, Account #13-9401-59200, in the amount of $25,000, for the purpose of recording the State Funds for Tech. Infrastructure Grant to be used for installation of routers at all the schools.
Messrs. Harrison, Hooper, Gugliotti and Mmes. Durdan and Bratton voted in favor.
06/07-14 - Supplemental Appropriation: $24,137 Additional Asbestos Removal, Towpath School
Explained in the March 23, 2007 background information memorandum to the Board of Finance from Town Manager Phil Schenck, additional asbestos removal was needed in connection with the demolition of Towpath School. The project was funded out of Open Space funds.
On a motion made by Mr. Hooper, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $24,137 from Account #02-0390-43923, Capital Project Fund (Facilities & Equipment), Other Financing Sources, Fund Balance Res. Land, Acq./Pres. to Account #02-4848-53052, Capital Projects Fund (Facilities & Equipment), Town CIP-Facil/Land Acquisition Preservation, Towpath School Demolition Project for the purpose of removing additional unforeseen asbestos, and the oversight monitoring of the asbestos material.
Messrs. Harrison, Hooper, Gugliotti and Mmes. Durdan and Bratton voted in favor.
06/07-15 – Transfer of Appropriation: $50,000 from Building #7 Account to Building #5 & 6
The Town Council recommended a transfer of appropriation from the Town Hall Renovations Building 5/6 project account to the Building 7 project account. Assistant to the Town Manager Blythe Robinson explained the proposed transfer as necessary for bookkeeping purposes.
On a motion made by Mr. Hooper, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $50,000 from the Capital and Nonrecurring Expenditure Fund, Town Hall Renovations, Building 7 Account #03-4930-53358, segregating the Building 5/6 Appropriation and Expenditures from those of the Building 7 project to Capital and Nonrecurring Expenditures, Town Hall Renovations, Building 5 & 6 Projects Fund, Account #03-4930-53386, for the purpose of segregating the Building 5 & 6 Appropriation and Expenditures from those of the Building 7 project.
Messrs. Harrison, Hooper, Gugliotti and Mmes. Durdan and Bratton voted in favor.
VII. MISCELLANEOUS
A. A.C.O.R.N. High School Field Project
The Board of Education approved and forwarded to the Board of Finance, a request for endorsement from officers of ACORN to raise $1.2 million to cover the cost of lighting for the Avon High School football field and to replace the field turf with artificial turf. The proposal is to donate the raised funds to the Town for the completion of the projects hopefully in about a year.
Town Manager Phil Schenck explained that the Recreation Master Plan, for which the Town Council and Board of Finance approved monies over a year ago, is due to be completed soon and a formal presentation will be made to the Town Council in either May or June. Whether or not the lighting project is in harmony with the plan will be considered. Mr. Gugliotti asked if the nearby residents object to the plan. Mr. Schenck responded that the neighbors are lukewarm at best and that the primary opposition appears to be related to “housekeeping” and behavior (trash, noise, urinating, drinking) problems rather than the lighting per se. The Board of Education has pledged to police and clean up the area and activities near the field.
B. Avon High School Renovation Project Update
Blythe Robinson, Assistant to the Town Manager, reported that the project is on schedule and under budget. Almost all of the subcontractors are signed and the construction manager is projecting a savings of $715,000 +/- in the guaranteed maximum price. There have been two change orders: an increase of $37,000 for storm drainage piping not know about at the time of bidding; and a deduct change order of $46,000 to change out some of the bleachers and take out the existing press box to make room for handicapped accessible bleachers required by state law. In response to a question from Mr. Gugliotti about the stains on the façade of the high school, Ms. Robinson stated that lead is leaching out the soffit onto the brick and is to be cleaned and the leaching problem
solved.
C. Town of Avon Referendum Mailer Draft
A draft of the Referendum Mailer was given to the Board members. It will explain to the voters the scope and cost of the proposed renovation of Town Hall Buildings 5 & 6. It needs to be reviewed by bond counsel and the Town attorney. It is anticipated that the Town Council will schedule the Town meeting and Referendum for this project in June. It was suggested that further explanation of what personnel and offices are housed in Buildings 5 and 6 be included in the mailer. The Board of Finance approved their report that is contained in the mailer.
VIII. OTHER BUSINESS - None
IX. ADJOURN
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:50 p.m.
Messrs. Harrison, Gugliotti, Monts, Hooper, and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest:Susan Burdsall, Clerk
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