 |
BOARD OF FINANCE
MINUTES
REGULAR MEETING
September 22, 2008
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:30 p.m. in the Selectmen’s Chambers at the Avon Town Hall. Members present: Margaret Bratton, Catherine Durdan, Tom Gugliotti, Tom Harrison, Bill Hooper, James Speich and Brett Eisenlohr.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mr. Gugliotti.
III. COMMUNICATIONS
There were none.
IV. MINUTES OF PRECEDING MEETINGS – April 28, 2008, May 14, 2008 Special Meeting, May 19, 2008 Workshop, May 27, 2008 Public Hearing, May 27, 2008 Special Meeting, June 4, 2008 Special Meeting, June 9, 2008 Workshop, June 16, 2008 Public Hearing, June 16, 2008 Special Meeting, June 25, 2008 Special Meeting and August 25, 2008
Regarding the May 19, 2008 minutes, Ms. Bratton stated that she feels a statement that she made during this Workshop was left out of the minutes. Chairman Harrison asked that she discuss this with the Clerk to clarify what was said.
Regarding the May 14, 2008 minutes, Mr. Speich stated that under New Business, two of the votes that were taken did not indicate who was in favor and who was opposed.
Chairman Harrison stated that, although the minutes correctly stated what he had said in the Workshops, what he said turned out to be incorrect. In the various Workshops, he stated that if all three referendums were defeated, that under the Town Charter, it would go to the Town Council. He stated that he was incorrect in saying this. Chairman Harrison explained that this is not addressed in the Town Charter; it is under State law. He stated that because the Charter is silent on what would happen if all three referendums were defeated, they would need to look to the State Law.
On a motion by Mr. Hooper, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance approved the minutes of April 28, 2008, May 27, 2008 Public Hearing, May 27, 2008 Special Meeting, June 4, 2008 Special Meeting, June 9, 2008 Workshop, June 16, 2008 Public Hearing, June 16, 2008 Special Meeting, June 25, 2008 Special Meeting, and August 25, 2008 as written and that the Board of Finance approved the minutes of May 14, 2008 and May 19, 2008 subject to the changes that will be made by the Clerk.
Messrs. Harrison, Gugliotti, Hooper, Speich, Eisenlohr, and Mmes. Bratton and Durdan voted in favor to approval all of the minutes, except for Mr. Speich, who abstained from the June 25, 2008 minutes and Chairman Harrison who abstained from the August 25, 2008 minutes.
V. OLD BUSINESS
07/08-23 Supplemental Appropriation: State of Connecticut Department of Social Services Grant, $5,000.
On a motion by Ms. Durdan, seconded by Mr. Eisenlohr, it was voted:
RESOLVED; That the Board of Finance hereby amends the FY 07/08 Budget by increasing:
REVENUES
Recreation Activities Fund, Intergovernmental, Computer Equipment Grant Senior Center, Account #09-0330-43384 in the amount of $5,000 and increasing:
APPROPRIATIONS
Recreation Activities Fund, Senior Citizens, Equipment, Account #09-5301-52194 in the amount of $5,000.00 for the purpose of funding computer equipment purchases, which will be reimbursed through approved State of Connecticut Department of Social Services Grant.
Messrs. Harrison, Gugliotti, Hooper, Speich, Eisenlohr and Mmes. Bratton and Durdan voted in favor.
VI. NEW BUSINESS
08/09-01 Supplemental Appropriation: Appraisal Services, $6,750
Mr. Speich questioned why this money was not being taken out of the Town Council budget. Mr. Schenck, Town Manager, stated that the Town Council has $40,000 for the year. It is still early in the year and there are already some indications of potential problems with salt and other areas for the winter. The Town Council is asking the Board of Finance to be cooperative in working with them to take these funds for this project out of the Undesignated Fund Balance. Mr. Schenck stated that this is a developing project and although they do not see any more immediate expenditures, there could possibly be another appraisal.
Mr. Gugliotti stated that although he is not opposed to this, he feels that this request helps define the policy regarding the use of surplus funds.
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED; That the Board of Finance hereby appropriates a sum not to exceed $6,750 from General Fund, Other Financing Sources, Undesignated Fund Balance, Account # 01-0390-43913 to General Fund, Town Council, Service & Consultant, Account # 01-1101-52184 for the purpose of updating a property study on Avon Old Farms School land parcels.
Messrs. Harrison, Gugliotti, Hooper, Speich, Eisenlohr and Mmes. Bratton and Durdan voted in favor.
VII. OTHER BUSINESS
Regarding the 2009/2010 budget calendar, Ms. Bratton stated that some of the dates fall on a Sunday. Mr. Schenck stated that the “Latest Date per Town Charter” column is very explicit with specific dates and the other column is a recommended date.
Chairman Harrison questioned how the Town was doing overall, with regard to balancing the books from last fiscal year. Ms. Colligan, Finance Director, stated that it does appear that the Town will have a positive operating result of approximately $10,000. This is due to the favorable revenues that have come in. Regarding the budget compliance, where appropriations have not been sufficient to cover the expenditures, she stated that the Town is approximately $420,000 overspent. Unfortunately, the Board of Education is $360,000 over budget, primarily due to Special Education costs. Ms. Colligan stated that through favorable revenues, they have been able to cover these costs in terms of operating results, although they will have to put on supplemental appropriations for budgetary compliance because they cannot
exceed the appropriations.
Mr. Hooper questioned if the Board of Education would need to come before the Board of Finance because they are over budget. Ms. Colligan stated that they would normally cover this in the end-of-year transfers, although if the Board of Finance would like more information, this can be provided. She stated that they would still need to put on supplemental appropriations, but because there are favorable revenues, revenues from the general fund can be used to adjust the budget.
Due to the upsets on Wall Street, Chairman Harrison questioned how the Town was doing regarding foreclosures. Mr. Schenck stated that the Town was not seeing anything significant, although there have been delays in payments on automobile taxes and real estate taxes. He stated that they are currently behind last year’s collection rate by about 1%, although the tax bills did not go out until July 15th this year. Mr. Schenck stated that foreclosures are up from 6 to 9; this is not significant. He stated that there is an increase in liens on properties, although there is not a dramatic increase.
Mr. Eisenlohr questioned if bonding rates might increase. Mr. Schenck stated that the Town Council, as part of the Library building project, has asked the financial advisor to come to their October 2nd meeting. He will be doing a Power Point presentation regarding debt service, what the Town currently has, what the Town is projected to have, how this fits in and what the budgetary impacts of this are. He urged the Board of Finance members to attend this meeting. Regarding the bond market, he stated that municipalities are insulated from some of the market pressures that are happening now. Many of the investment banks that are folding are more involved with larger projects.
Mr. Schenck discussed the Town’s credit rating. He stated that people of influence have called upon Congress and Senate to change, by mandate, some of the criteria that are used. He stated that he is not sure how this new criteria will be implemented into the rating.
Chairman Harrison questioned how the revaluation was going. Mr. Schenck stated that they are working on the last uniform area in Town, Farmington Woods. He stated that this is 1/6 of the total housing in Avon. He stated that the 22% as the differential between the market and the 2003 revaluation has declined to 16%-18%. Housing prices have come down in Avon somewhat and the revaluation is taking this into account. Regarding commercial property, Mr. Schenck stated that this is up slightly. Condominiums are up, although not as much as single family homes.
Regarding the revaluation, Mr. Schenck stated that everything is running on time. Notices will be sent out in November. Opportunities for hearings or to talk with the appraiser will take place in December and January. The appeals board process will be in February. He believes that they will be setting the Grand List by March.
VIII. EXECUTIVE SESSION
There was none.
IX. ADJOURN
On a motion by Mr. Gugliotti, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:10 p.m.
Messrs. Harrison, Gugliotti, Hooper, Speich, Eisenlohr and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
| |
