BOARD OF FINANCE
MINUTES
June 25, 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, Mike Monts and Tom Gugliotti. Jim Speich was absent.
II. PLEDGE OF ALLEGIANCE – Led by Mike Monts.
III. COMMUNICATION FROM AUDIENCE
David Goldscholl, 57 Old Kings Road, “I just want to say as you close out the year that I think it was a very good year and that the Board of Finance maintained its discipline as you discussed throughout the year different things, things that I know I brought up …(a portion unintelligible)… I think that folks in Town were thrilled by it as the vote showed on the referendum! They’re thrilled by it and you have tremendous support in Town for fiscal responsibility and discipline in what you’ve been doing and I encourage you to continue and have another great year so thank you!”
IV. MINUTES OF PRECEDING MEETING: May 16, 2007
On a motion made by Mrs. Bratton, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance approve the minutes of the May 16th meeting.
Messrs. Gugliotti, Harrison, Hooper, Monts and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS
06/07
Mr. Harrison asked Town Manager Phil Schenck for an update on the state budget. The ECS (education cost sharing) figures were received that morning and the amounts for FY 06/07, FY 07/08, and FY 08/09 Budget are listed town by town. Avon’s FY 06/07 grant revenue of $1,187,372 will increase $333,099 in FY 07/08 to $1,520,471. In FY 08/09 there will be an additional increase of $61,752 bringing ECS revenue to $1,582,223, a $394,851 increase from FY 06/07. Mr. Schenck noted that the ECS funds had not been budgeted. It is anticipated that the Board of Education may request the funds but, according to state law, if over 50% of education funding for a town comes from the town, the town does not have to give the supplemental funding to education. It goes into the town’s general
fund and is allocated as needed. The Board of Finance, therefore, is not obligated to put ECS funds to use in education. The monies will be allocated as from undesignated fund balance or surplus.
Mr. Gugliotti noted that ECS is a way for the state to return some property tax money to the towns. Mr. Schenck continued with some of the history of ECS. At the local level, education funding is based on property values and ECS had been started as a way to equalize education between affluent and non-affluent towns. There had been three significant lawsuits brought against the State regarding equality of education between towns rich and poor. To determine the distribution of monies, there is a formula and distressed communities will have a higher score than affluent towns such as Avon. Mr. Schenck reported that many were surprised by Governor Rell’s proposal to increase the state income tax and use the added income for education. The Board of Education has indicated that the
increased operating cost of the high school will be $425,000 which was not budgeted. The ECS funds would cover much of that cost.
In 08/09 there will be the $425,000 “bump” and property revaluation will be happening as well. Currently, property in Avon is going up in value but slowly at a rate of about 1% per year. Mr. Schenck stated that it serves the Town well that the conveyance tax revenue and the ECS revenue was not included in the budget. It will help build the surplus fund. The conveyance tax has been renewed for one year so revenue from it will not be included in next year’s budget process.
Chairman Harrison thanked Mr. Schenck for his budget information and history.
VI. NEW BUSINESS
06/07-18 Supplemental Appropriation: Capital Projects Fund $6,300; Town Green Decorative Lighting
Chairman Harrison asked for a motion and any discussion.
On a motion made by Mr. Hooper, seconded by Mrs. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 06/07 Budget by increasing Revenues, Capital Projects Fund (Facil & Equip), Other Local Revenues, Donations, Lighting Town Center, Account # 02-0360-43655 in the amount of $6,300 and increasing Appropriations, Capital Projects Fund (Facil & Equip), Town CIP-Facilities, Lighting Town Center, Account # 02-4829-53066 in the amount of $6,300 for the purpose of recording donations for participation in the Town Green Lighting Program.
Messrs. Harrison, Gugliotti, Monts, Hooper and Mmes. Bratton and Durdan voted in favor.
06/07-19 Transfer of Appropriations: $44,346.47; Senior Center Renovations and Painting
Discussion centered on from which account/fund the monies for the Senior Center renovations would be allocated. The renovations include roof repair, window sill replacement, painting the exterior trim and replacing flashing around the chimney. It was requested that funds from five Capital Projects Fund accounts including those related to the purchase of 2 properties adjacent to the library be transferred to one entitled “Senior Center Repairs Account” instead of allowing these funds to lapse to “Surplus”. Mr. Schenck would like to take advantage of the existing bidding process completed recently for painting portions of AVFD Company 4 to also paint the Senior Center. There was discussion of whether or not this request was an emergency and should come out of surplus funds
although the repairs are included in the budget as a CIP (Capital Improvement Project). Other anticipated requests to come from the surplus were discussed also, such as the Board of Education needing to pay for repairs to a leaking tank at Roaring Brook School as well as roof repairs and replacement of 2 chillers. The consensus was that those requests will be funded from surplus and that the Senior Center renovation request is not to be funded from surplus.
On a motion made by Mr. Gugliotti, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance appropriate a sum not to exceed $44,346.47 by transferring from Accounts:
#02-4849-52219 Capital Projects Fund (F&E), Purchase and Library Expansion, Other $24,841.65
#02-4857-52183 Capital Projects Fund (F&E), Property Purchase, 267 CC Rd., Legal Fees & Exp. $500
#02-4857-52219 Capital Projects Fund (F&E), Property Purchase, 267 CC Rd.,
Other $8,962.65
#02-4857-52239 Capital Projects Fund (F&E), Property Purchase 267 CC Rd., Materials-Other $6,142.08
#02-4857-53344 Capital Projects Fund (F&E), Property Purchase 267 CC Rd., Land & Building $3,900.09
For a combined total of $44,346.47 to Capital Projects, Senior Center Repairs Account #02-4829-53068 for the purpose of funding critical repairs at the Senior Center.
Messrs. Harrison, Gugliotti, Monts and Mmes. Bratton and Durdan voted in favor. Mr. Hooper
voted against the motion, for reasons of procedure, his opinion being: the request for use of the
funds from the five accounts should be made after the monies have lapsed into surplus.
VII. EXECUTIVE SESSION
On a motion made by Mr. Hooper, seconded by Mrs. Bratton, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:30 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts and Mmes. Bratton and Durdan voted in favor.
On a motion made by Mr. Hooper, seconded by Mrs. Bratton, it was voted:
RESOLVED: That the Board of Finance come out of Executive Session at 9:05 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts and Mmes. Bratton and Durdan voted in favor.
VIII. MISCELLANEOUS – None
IX. OTHER BUSINESS
Assistant to the Town Manager Blythe Robinson stated that as a result of the positive vote on the referendum to approve renovations to Town Hall complex buildings 5 and 6, the offices and personnel will be relocated for the duration of the renovation. Arrangements have been made for the Boards to meet in other places on a consistent basis. The Board of Finance will meet at Countryside Park starting with the July meeting.
X. ADJOURN
On a motion by Mr. Hooper, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:10 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
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