BOARD OF FINANCE
MINUTES
July 23, 2007
I. CALL TO ORDER – Chairman Tom Harrison called the meeting to order at 7:30 p.m. at the Countryside Park building. Members present: Margaret Bratton, Catherine Durdan, Bill Hooper, Mike Monts and Tom Gugliotti and Jim Speich.
II. PLEDGE OF ALLEGIANCE – Led by Margaret Bratton.
III. COMMUNICATION FROM AUDIENCE - None
IV. MINUTES OF PRECEDING MEETINGS:
April 9, 2007 – Public Hearing, held at the Senior Center:
Page 1, Item I, line 4, Mike Monts was listed erroneously as absent; he was present.
April 10, 2007 – Budget Workshop: held in the Avon Room of Town Hall:
Page 4, paragraph 1: Mrs. Bratton felt her comments needed clarification and are amended as follows:
“The majority of residents I have talked to have kids and are being careful of household spending this year. We need to keep residents in town long term.~ We also need to keep in mind that the residents approved and supported the Avon High School expansion. This year we can give our support back over to the residents by keeping new increases as low as possible. I propose the Board of Finance come up with no more than 2.7% increase and that there be no cuts from the Town Council until the Board of Education gets down to a 5% increase. Mrs. Bratton further suggested that since the budget increases are given 60% to the Board of Education and 40% to the Town Council, that budget decreases should be taken in the same proportion, 60% from the Board of Education and 40% from the Town Council.”
April 23, 2007 – Regular meeting, Selectmen’s Chambers, Town Hall:
No amendments.
On a motion made by Mr. Gugliotti, seconded by Mrs. Durdan, it was voted:
RESOLVED: That the Board of Finance approve the minutes of the April 9, 2007 Public Hearing, the April 10, 2007 Budget Workshop, and the April 23, 2007 meeting as amended. Messrs. Gugliotti, Harrison, Hooper, Monts, Speich and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS
06/07-03 – Supplemental Appropriation: $156,962: Board of Education: Gary Franzi, Finance Director, Board of Education
Gary Franzi, Finance Director, Board of Education, spoke about the unplanned capital projects completed during the 06/07 fiscal year. One year ago $156,962 was appropriated for the five projects and the funds were distributed into five accounts. The projects included the Avon High School boiler repair, the Avon Middle School domestic hot water tank, the Roaring Brook Elementary School fuel oil tank removal, the Thompson Brook School compressor replacement, and the Thompson Brook School underground oil tank drainage system. With the exception of the Roaring Brook School fuel oil tank removal, all the projects have been completed. The soil around the Roaring Brook School fuel oil tank has been found to be contaminated and extra costs are involved. It was necessary to file with the Connecticut EPA and
Enviroscience will re-excavate and examine after the winter. Additionally, ground well monitoring must be installed at a cost of $40,800. By moving the unused funds in the five accounts to one, and by using any monies from insurance claims on the projects, there still is a shortfall of $15,881.62. If the state finds additional soil problems, there may be further costs later. Mr. Speich suggested using money from the new fiscal year and that the Board of Education request additional funds if necessary. Mr. Schenck stated that it would necessitate that the Board of Education make a request to the Town Council later to move operating funds to capital funds.
On a motion made by Mr. Monts, seconded by Mr. Gugliotti, to approve all four requests per the recommendations of the Town Council, it was voted:
a. Request for Transfer of Funds between Projects: $4,970.75
RESOLVED: That the Board of Finance hereby amends the FY 06/07 budget by transferring from Account #02-4859-53112, Capital Projects Fund (Facil & Equip), BOE CIP Facilities, TBS Underground Fuel Tank Pad Repair, in the amount of $4,970.75 to Account #02-4859-53103, Capital Projects Fund, BOE CIP Facilities Fund, RBS Underground Fuel Tank Removal, for the purpose of transferring available funds from projects completed under budget to offset expenditures for projects that were completed over original budget estimates.
b. Request for Transfer of Funds Between Projects: $11,350.00
RESOLVED: That the Board of Finance hereby amends the FY 06/07 budget by transferring from Account #02-4859-53100, Capital Projects Fund (Facil & Equip), BOE CIP Facilities, AHS Boiler #2 Leak, in the amount of $11,350,
to Accounts:
#02-4859-53101 Cap. Proj. Fund (F&E), BOE CIP-Facilities, AMS Hot
Water Tank Replacement $ 10,880.00
#02-4859-53103 Cap. Proj. Fund (F&E), BOE CIP-Facilities, RBS
Underground Fuel Tank Removal $ 470.00
$ 11,350.00
for the purpose of transferring available funds from projects completed under budget to offset expenditures for projects that were completed over original budget estimates.
c. Request for Use of Insurance Reimbursement Funds to Apply to Projects: $14,792.13 Additional Supplemental Appropriation from
Undesignated Fund Balance: $15,881.62 Transfer of Appropriations: $30,673.75
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $15,881.62 from General Fund, Other Financing Sources, Undesignated Fund Balance Account #01-0390-43913, to amend the FY 06/07 Budget and increase Revenue Account #01-0360-43612, General Fund, Other Local Revenues, Refunds & Reimbursements, in the amount of $14,792.13 and transfer from General Fund, Other Financing Uses, Interfund Transfers Out Account #01-8700-58000 for a total of $30,673.75 to Account #02-4859-53103 Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, Underground Fuel Tank Removal and Capital Projects Fund (Facil & Equip), Other Financing Sources, Interfund Operating Transfers-In Account #02-0390-43918 in the amount of $30,673.75 for the purpose of providing the
additional funding required for the Roaring Brook Elementary School UST project.
d. Unplanned Capital Expenditures: $18,626.25
RESOLVED: That the Board of Finance hereby amends the FY 06/07 budget by transferring
from Accounts:
#02-4859-53111 Capital Projects Fund (Facil & Equip), BOE CIP
Facilities, TBS Compressor Failure Chiller Unit, in the amount of $ 18,397.00
#02-4859-53112 Capital Projects Fund (Facil & Equip), BOE CIP
Facilities, TBS Underground Fuel Tank Pad Repair, in the amount of $ 229.25
$ 18,626.25
to Account:
#02-4859-53103 Capital Projects Fund (Facil & Equip), BOE
CIP-Facilities, RBS Underground Fuel Tank Removal, in the
amount of $ 18,626.25
for the purpose of providing the additional funding required for the
Roaring Brook Elementary School UST project.
VI. NEW BUSINESS
07/08-01 – Supplemental Appropriation: General Fund Undesignated Fund Balance: $19,325, Avon High School Gymnasium Compressors: Gary Franzi, Finance Director, Board of Education
Gary Franzi, Finance Director, Board of Education, addressed the Board requesting a supplemental appropriation to cover the cost of two of three failed chillers at Avon High School. The largest compressor was under warranty but its failure caused the failure of the two remaining chillers no longer under warranty. His request included the $17,225 for the cost of the new compressors and $2,100 for a five-year warranty from Trane for all three compressors for five years. The total request was for $19,325. When the air conditioning failed, the contractor replaced the compressors knowing he would not be paid until the new fiscal year funds were available.
The policy on the Use of Surplus was brought up by Mr. Gugliotti as he stated that the Board of Education acted in an emergency to replace the chillers and now needed the funds to pay for them. Mr. Harrison questioned whether this request was the type of emergency that should be taken out of Surplus only three weeks into the new fiscal year. He was not comfortable in appropriating money from Surplus. Mr. Gugliotti felt it fit the definition of an emergency. Mr. Monts stated that it seemed premature to give money from Surplus at this time.
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 $19,325 from account #01-0390-43913 General Fund, Other Financing Sources, Undesignated Fund Balance to Account #01-9401-52185 General Fund, Board of Education, General Service, for the purpose of replacement of the compressors for the AHS Gymnasium that are not covered under warranty.
Messrs. Gugliotti and Hooper voted in favor. Messrs. Harrison, Monts, Speich and Mmes. Bratton and Durdan voted against.
The motion was defeated. The Board of Education will proceed with operating funds to cover the cost of the replacement of the chillers.
VII. MISCELLANEOUS – None
VIII. OTHER BUSINESS – The work on the Roaring Brook School roof is on time and on budget.
IX. ADJOURN
On a motion by Mr. Hooper, seconded by Mr. Monts, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:10 p.m.
Messrs. Harrison, Gugliotti, Hooper, Monts, Speich and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
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