BOARD OF FINANCE
MINUTES
September 24, 2007
I. CALL TO ORDER
Secretary Tom Gugliotti called the meeting to order at 7:30 p.m. at the Countryside Park building.~ Members present:~ Margaret Bratton, Catherine Durdan, Bill Hooper, and Tom Gugliotti and Jim Speich. Mike Monts and Tom Harrison were absent.
II. PLEDGE OF ALLEGIANCE – Led by Catherine Durdan
III. COMMUNICATION FROM AUDIENCE – Journalism student Katy Cormier taped the public portion of the meeting for an assignment.
IV. MINUTES OF PRECEDING MEETINGS:~
June 25, 2007 Minutes
On a motion by Mr. Hooper, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance approve the minutes of June 25, 2007.
Messrs. Gugliotti, Hooper, and Mmes. Bratton and Durdan voted in favor. Mr. Speich abstained due to his absence from the June 25 meeting.
July 23, 2007 Minutes
On a motion by Mr. Speich, seconded by Mrs. Bratton, it was voted:
RESOLVED: That the Board of Finance approve the minutes of July 23, 2007.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS - None
VI. NEW BUSINESS
07/08-02 General Fund Supplemental Appropriation and Transfer to Capital Projects Fund: $98,500 Road Overlay
During budget deliberations in April, the Town Council agreed to have $98,500 cut from the Capital Improvement Program Road Overlay Budget. Since April, the State passed a budget with an increase in ECS (Education Cost Sharing) revenues to Avon of approximately $332,000. As well, the State extended the conveyance tax for real estate transactions and it is estimated that revenues from the tax will be about $200,000. As a result, the Town will have unbudgeted revenue receipts in excess of $500,000 and the Town Council requested that the $98,500 be restored to the Road Overlay Program. Mr. Gugliotti read into the minutes the following excerpt from the April 10, 2007 Budget Workshop Minutes:
“John Carlson, for the Town Council, stated that they would meet the $136,000 cut by cutting $37,500 in various Operating Budget categories and by cutting $98,500 from road improvements in the Capital Improvement Budget. If the Town receives state funds, it is expected that the funds in the Capital Budget will be restored.”
Town Manager Phil Schenck explained the Board of Education had received word that they should expect an appropriation from the State of about $157,000 and that the Board of Finance does not need to make additional funding available to the Board of Education at this time. Mr. Schenck stated that the Town may have problems later in the fiscal year with hydrant cost increases and costs related to personnel at the landfill.
On a motion by Mr. Hooper, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 07/08 Budget by increasing General Fund, Licenses and Permits, Recording and Conveyance, Account #01-0320-43411 and General Fund, Capital Improvement Projects, Facilities, Road Overlay Account #01-8501-53003 and transfer from General Fund, Other Financing Uses, Interfund Transfers Out Account #01-8700-58000 in the amount of $98,500 for transfer to Capital Projects Fund (Facilities & Equipment), Other Financing Sources, Interfund Operating Transfers In Account #02-0390-43918, and Capital Projects Fund (Facil. & Equip.), Town CIP-Facil/Road Overlay, Road Overlay Account #02-4831-53003 in the amount of $98,500 for the purpose of restoring funds to road improvements in the
Capital Improvement Budget per discussion at the Board of Finance Workshop held April 10, 2007.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
07/08-03 - Approve Board of Finance Meeting Schedule 2008 and January 2009
On a motion by Mrs. Bratton, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance approve the Board of Finance Meeting Schedule 2008 and January 2009 as presented by the Town Manager’s office.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
VII. MISCELLANEOUS – None
VIII. OTHER BUSINESS –
Certificate of Achievement for Excellence in Financial Reporting
Mr. Gugliotti spoke about how fortunate the Town of Avon is to have such a competent professional staff. This is especially true of Peg Colligan, Director of Finance, who has been recognized once again by the Government Finance Officers Association of the United States and Canada (GFOA) for the excellence of the Town of Avon comprehensive annual financial report (CAFR). Mr. Gugliotti read the following from the certificate:
“The award of Financial Reporting Achievement is presented by the Government Finance Officers Association to the individual designated as instrumental in their government unit achieving a Certificate of Achievement for Excellence in Financial Reporting. A Certificate of Achievement is presented to those government units whose annual financial reports are judged to adhere to program standards and represents the highest award in government financial reporting.”
Mr. Gugliotti presented the certificate to Ms. Colligan and invited her to comment. She accepted the award while stating that it was earned by a team of people.
Emergency Generator for Avon High School
Blythe Robinson, Assistant to the Town Manager, updated the Board on the progress of a grant application to the Department of Public Utility Control (DPUC). The grant was applied for in May and, if awarded, would reimburse the Town for $100,000 of the cost of installing a diesel generator at the high school. The purpose of the generator would be to shed load during peak times of power demand as well as to function during emergency periods. Awarding of grants has been put on hold by the DPUC although it appears that applications submitted before July 2007 may be approved. The original estimate from FIP Construction was $497,000. It is good news that, after the electrical contractor reviewed the proposal, the new estimate is $213,000.
Renovation of Town Hall Buildings 5 and 6
Ms. Robinson gave an update on progress of the renovation of Buildings 5 and 6 to date. Demolition of the interior of both buildings essentially is completed and new footings have been poured. It has not been an entirely smooth process as demolition has uncovered unforeseen problems. While there is $100,000 contingency built into the Enterprise Builders’ bid, $72,000 is committed at this point. The costs are due to interior and exterior lead abatement. As well, there is inadequate corner underpinning of the foundation between buildings 6 and 7; the foundation stones rest on dirt only. A buttress wall of concrete will be constructed. There are also concerns with the second floor ceiling and insulation of the underside of the roof. An unknown cost at this point is for
removal of an underground vault. Public Works will take on several projects to save money such as re-pointing the existing masonry and removing exterior stairs at building 7. At this time, the project is within budget but there are concerns about what may be discovered over the next month.
Avon High School Addition
The High School opened to students on time and construction of the second addition continues. The project is on track to be finished in April and it is under budget by about $725,000. The new gymnasium is finished and, after bleachers are installed, it will be ready for use in about two weeks. The cafeteria should be ready by mid-December.
School Construction Bonding
Mr. Schenck spoke about the delay of the state in authorizing bonding of school construction projects. Avon is due to receive over $50,000 for installation of the fire alarm system at Avon Middle School. It is hoped the state legislature will vote next week to authorize bonding for construction projects. Mr. Schenck stated that at CCM (Connecticut Conference of Municipalities) meetings there has been discussion about the need for school funding especially for projects already started. The Town can cover the shortfall but will lose interest income if forced to cover what bonding would fund.
Quarterly Financial Report, Period Ended June 30, 2007
Peg Colligan reviewed highlights of the Quarterly Financial Report. The Board of Education will finish up the year with a balanced budget but it will require a transfer in from the Cafeteria Fund. The proposed interfund transfer has met with auditor approval and will be included in the Final Fiscal Year Transactions for Board approval. For the quarter ending June 30, 2007, the information is unaudited on a cash basis and is anticipated to have positive operating results. The major stressors on the Town side of the budget were in the area of hydrant costs, utilities, trash hauling and police overtime. The water companies were granted a large increase (Avon Water 30% increase) rather than a series of small increases. In April, the Town made a decision to implement a discretionary spending
freeze, which proved to be helpful. Increased expenditures in utilities, trash hauling, and police overtime have been covered by positive balances in the functional categories of General Government, Health and Social Services, Conservation and Development, and Miscellaneous. On the plus side, due to tax collection efforts and conservative budgeting for own-source revenues, most of the revenue sources have met or exceeded their budget appropriations. Revenue from the conveyance tax exceeded the budget appropriation by $220,000 and interest income for 06/07 exceeded the budget appropriation by more than $180,000. Bond Anticipation Notes will be issued in October with a sale date of October 17 and a settlement date of October 26, 2007. Estimated Undesignated General Fund Balance as a percentage of General Fund expenditures are at 6.2% at this point.
When asked about the reason for the increase in hydrant costs, Mr. Schenck answered that there has been a $200,000 increase in the cost of hydrants. Usually costs would increase gradually and could be budgeted for but in this case it was done all at once. The Town is phasing it in at about $60,000 a year.
IX. EXECUTIVE SESSION
On a motion made by Mr. Speich, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:12 p.m.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
On a motion made by Mrs. Bratton, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance come out of Executive Session at 8:20 p.m.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
X. ADJOURN
On a motion by Mrs. Bratton, seconded by Mr. Hooper, it was voted:
RESOLVED:~~~ That the Board of Finance adjourn at 8:21 p.m.
Messrs. Gugliotti, Hooper, Speich and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
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