BOARD OF FINANCE
MINUTES
March 24, 2008
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:30 p.m. at Countryside Park. Members present: Margaret Bratton, Catherine Durdan, Tom Gugliotti, Bill Hooper, Tom Harrison and Brett Eisenlohr.
II. PLEDGE OF ALLEGIANCE – Led by Chairman Harrison.
III. COMMUNICATION FROM AUDIENCE
David Goldsholl, 57 Old Kings Road, thanked the members of the Board of Finance for the joint session they had recently. He stated that he has gotten good feedback regarding that session. Two good issues were brought up at that meeting: 1) the list presented by the Board of Education regarding Capital expenses; and 2) the commentary regarding having consultants come in.
Chairman Harrison stated that he also received positive feedback regarding that meeting. Several people made the suggestion to have the meeting earlier in the budget cycle next year. Chairman Harrison also thanked Mr. Goldsholl for being a contributor of the session. Regarding hiring an outside consultant, Chairman Harrison stated that this would need to be the choice of all three Boards, although authorization of the funds would be up to the Town Council.
Mark Zacchio, a member of the Town Council, stated his concerns regarding the consultant. He would not want a consultant to come in and tell Avon how to run the Town. He stated that Avon has a Charter and input from people for that reason.
Mr. Gugliotti apologized to Ms. Bratton and to the Board for being rude in his response to her at the Tri-Board meeting.
IV. MINUTES OF PRECEDING MEETINGS: February 25, 2008
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance approved the minutes of February 25, 2008 as written.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS
07/08-12 Review, Discussion and Acceptance: FY 06/07 Audit
Ms. Colligan, Director of Finance, introduced Vanessa Rossitto, Partner, and Stacy Nobitz, Manager, with BlumShapiro.
Ms. Rossitto highlighted the CAFR Report for the Board of Finance members. She stated that BlumShapiro has given their audit opinion and has given Avon the highest form of an opinion that can be given by an auditor.
Ms. Rossitto discussed the Statement of Net Assets for the Town of Avon, which included debt, bonding notes and other liabilities. She stated that Avon’s assets increased $5.3 million during the current fiscal year. She also discussed the balance sheet of governmental funds and reviewed details of the funds. She also highlighted the General Fund, which decreased $529,000 during the past fiscal year. Also, Ms. Rossitto highlighted the details of the revenues and expenditures for the year ending June 30, 2007, and reviewed the Statement of Fiduciary Funds
In response to a question by Ms. Bratton regarding stop loss insurance, Mr. Schenck, Town Manager, stated that the Town does not currently have stop loss insurance. He stated that it was less expensive without this insurance. Because of this, there is an increase in the fund balance in order to cover potential overages.
Ms. Rossitto reviewed and discussed the notes to the financial statements, including capital assets of the Town of Avon. She explained this in the summary of short term debt and long term debt.
Chairman Harrison questioned Ms. Rossitto if, in her opinion, the Town needs to look at anything more closely. Ms. Rossitto stated that the General Fund balance should be between 5% - 15%. The Town of Avon is currently closer to the 5% range. She stated that the Town is in “acceptable” shape and she would not recommend any changes in the accounting practices of the Town.
Ms. Rossitto discussed the Management Letter and their recommendations. Regarding the year end closing process, she stated that things came up that were not anticipated. She recommended that the Town implement a formal year-end closing process to follow. Regarding the bank reconciliations and pension funds, Ms. Rossitto stated that these need to be done more timely. Regarding the technology security matters, she recommended that the Town should enhance their data backup procedures and the Town should also develop and test a comprehensive disaster recovery plan.
Ms. Rossitto also discussed the new auditing standards. She stated that they now need to document internal controls with written memos instead of visits. She stated that she would like to have a meeting with the Board of Finance or a representative from the Board at an informal meeting to further discuss this issue.
On a motion by Ms. Bratton, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance accepts the FY 06/07 Audit.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
07/08-13 Appoint Auditor: FY 07/08
Ms. Colligan, Director of Finance, stated that the Town’s three-year contract with BlumShapiro is completed. She recommended appointing BlumShapiro again for FY 07/08 for a one or two year contract, which ever the Board of Finance members agreed upon.
Mr. Gugliotti stated that, although he feels that the same auditor should not be contracted for too many years in a row, he feels that this timeframe has not been exceeded.
On a motion by Ms. Durdan, seconded by Ms. Bratton, it was voted:
RESOLVED; That the Board of Finance approves the retention of BlumShapiro as auditor for the Town of Avon for FY 07/08.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
06/07-21 Review and Discussion: FY 08/09 Budget
Mr. Gugliotti stated that several members of the Board of Education have expressed their concerns to him regarding their budget deficits and each of those members had expressed that they would like the Board of Finance to discuss the issue. Those same members have since been satisfied with the resolution made by the Board of Finance that stated they would cover, in good faith, a deficit of Board of Education expenditures.
VI. NEW BUSINESS
07/08-14 Supplemental Appropriation: $12,581.25 Avon Mountain Hazardous Moving Violation Grant
Chairman Harrison stated that this is a “wash”. The Town of Avon has received a grant and that the budget will be amended to reflect the grant and what it was used for.
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance amends the FY 07/08 Budget by increasing:
REVENUES
General Fund, Intergovernmental, Federal Hazardous Moving Violation Grant, Account #01-0330-43324 in the amount of $12,581.25 and increasing:
APPROPRIATIONS
General Fund, Patrol Services, Overtime, Account #01-2107-51015 in the amount of $12,581.25 for the purpose of recording the Federal Grant award to pay for supplemental police patrols for motor vehicle enforcement.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
07/08-15 Supplemental Appropriation: $7,363.63 DUI Enforcement Grant
Chairman Harrison stated that this DUI grant is another “wash”.
On a motion by Mr. Gugliotti, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance amends the FY 07/08 Budget by increasing:
REVENUES
General Fund, Intergovernmental, Holiday DUI Enforcement, Account #01-0330-43320 in the amount of $7,363.63 and increasing:
APPROPRIATIONS
General Fund, Patrol Services, Overtime, Account #01-2107-51015 in the amount of $7,363.63 for the purpose of funding Police overtime for the DUI Enforcement Program.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
07/08-16 Supplemental Appropriation: $27,564.00 Wood Chipper Replacement
Mr. Schenck, Town Manager, stated that he had been instructed by the Town Council to try and find used equipment instead of buying new. He stated that this wood chipper is a demo and is less expensive than a new one would be.
Mr. Gugliotti questioned if there was any value left to the old chipper. Mr. Schenck stated that they would be putting it on an on-line auction, but he was unsure of the value. Mr. Gugliotti questioned if this wood chipper would come with a warranty. Mr. Schenck stated that it comes with the same warranty as a piece of new equipment would.
On a motion by Ms. Bratton, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $27,564 from Account #01-0390-43913, General Fund, Other Financing Sources, Undesignated Fund Balance with the intended source Unreserved Designated for Capital Asset Replacement and transfer from Account #01-8503-53072, General Fund, Capital Improvement Projects, Equipment, Wood Chipper to:
Account #02-4844-53072, Capital Projects Fund (Facil & Equip), Town CIP – Equipment, Wood Chipper, and Account #02-0390-43918, Captial Projects Fund (Facil & Equip), Other Financing Sources, Interfund Operating Transfers In, in the amount of $27,564 to purchase a wood chipper.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
07/08-17 Supplemental Appropriation: $21,000 Pool Painting
Mr. Marston, Director of Parks and Recreation, stated that this item has been taken out of the last two budgets. He stated that it is very important that this painting gets done. There are exposed concrete spots where the paint has worn out. He stated that the price continues to go up because the spots are getting bigger. He stated that this will be a recurring expense.
Mr. Gugliotti stated that because of the delay, it has ended up costing the Town more.
On a motion by Mr. Hooper, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $21,000.00 from Recreation Activities Fund, Other Financing Sources, Undesignated Fund Balance, Account #09-0390-43913 and Transfer Out from Recreation Activities Fund, Other Financing Uses, Interfund Transfer-Out, Account #09-8700-58000 and Transfer In to General Fund Swimming Programs, Services – Other, Account #01-5105-52189 and General Fund, Other Financing Sources, Interfund Operating Transfers In, Account #01-0390-43918 in the amount of $21,000.00 for the purpose of painting the Sycamore Hills Pools.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr, and Mmes. Bratton and Durdan voted in favor.
07/08-18 Review and Discussion: Bonding Threshold and Lease Threshold Policies
Mr. Schenck, Town Manager, stated that Ms. Colligan, Director of Finance, has worked on this draft for debt policy. Ms. Colligan stated that she researched other Towns and looked at their policies as she worked to draft this policy. She went over the draft with the Board members.
Regarding the short and long term debt, Ms. Colligan stated that she would like to expand upon leasing for short periods of time. She stated that she would appreciate input from the Board members. Regarding structural features of debt, she stated that she will be expanding upon this section also. Ms. Colligan stated that, although they are not in this draft, she will be creating charts regarding debt burden indicators, debt service indicators and overlapping debt. She stated that she will be working with the financial advisor on this.
Regarding refunding of debt, Ms. Colligan stated that the Town of Avon does do debt refunding. She stated that this section could be taken out of the policy, but has left it in for the time being. Regarding debt authorization, she will be putting in the appropriate sections of the Charter in this section of the policy.
Chairman Harrison thanked Ms. Colligan for putting this draft together and for all of her hard work.
Chairman Harrison stated his concerns regarding if there would be enough time to put this policy in place for this year’s budget. He stated that it is important for all three Boards to be involved and give their input. He recommended that the Town Council and the Board of Education get copies of this draft policy. Ms. Colligan stated that she would e-mail the draft out to those Board members. Mr. Gugliotti stated that he was not sure this policy was a necessary component for this budget, although it is important for bonding. Chairman Harrison and Mr. Gugliotti agreed that it was more important that this policy be written and done correctly rather than rushing things.
Chairman Harrison questioned if Mr. Schenck felt that this policy could be done correctly in a timely manner. Mr. Schenck stated that it absolutely could be done. He stated that Ms. Colligan would continue to work on the draft and would include the additional necessary information and get it to all Board members prior to the workshops on April 9th & 10th. Mr. Schenck also stated that if there is a consensus of the Board of Finance members that this is being rushed, he would then slow things down. If not, then there would be a workable policy for this year’s deliberations.
Linda Merlin, 48 High Gate Drive, has attended several Board of Education meetings and she stated that the Board of Education feels they cannot lease without permission. She stated that they need to know that they can do that independently.
VII. OTHER BUSINESS
Regarding the slide presentation for the Public Hearing, Mr. Gugliotti stated that he would like a slide to show the comparison of tax rates between Avon and surrounding Towns. He feels that this is very important to show. Ms. Bratton suggested that the slides clarify if it is a tax increase or spending increase. She feels that this would be very helpful.
Regarding the Town newsletter, the Board of Finance members discussed having an article in the newsletter. It was decided that Blythe Robinson, Assistant Town Manager, would put together a draft for the members to review. After their workshop on April 9th, she would then put in the appropriate numbers.
VIII. EXECUTIVE SESSION
There was none.
IX. ADJOURN
On a motion by Mr. Gugliotti, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance adjourn at 9:20 p.m.
Messrs. Harrison, Gugliotti, Hooper, Eisenlohr and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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