BOARD OF FINANCE
MINUTES
REGULAR MEETING
July 27, 2009
I. CALL TO ORDER
Chairman Harrison called the regular meeting to order at 7:30 p.m. in the Selectmen’s Chambers at the Avon Town Hall. Members present: Margaret Bratton, Catherine Durdan, William Hooper, James Speich, Thomas Gugliotti and Brett Eisenlohr.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mr. Eisenlohr.
Chairman Harrison welcomed new Superintendent, David Erwin and Peggy Roell and Gary Franzi, who were in attendance at the meeting.
Chairman Harrison also congratulated Mr. Speich on recently being a first time grandfather.
III. COMMUNICATIONS
There were none.
IV. MINUTES OF PRECEDING MEETINGS: June 22, 2009
On a motion by Mr. Hooper, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance approve the minutes of June 22, 2009 as written.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
V. OLD BUSINESS
07/08-08 Review and Discussion: Avon Free Public Library Renovations
Additions Building Committee: Referendum Mailer
Mr. Schenck, Town Manager, stated that he would like comments and feedback from the Board of Finance regarding what has been presented. He stated that this will go to the Town Council on August 6th if it is agreeable to the Board of Finance. It will then continue to move forward to the next steps.
Mr. Schenck stated that, as part of this schedule, there will be a special meeting on September 3rd. He asked that everyone mark this on their calendars. It is possible that there will not be a need to have the August meeting; the September 3rd meeting can be used to complete the Library business as well as other business that may come before the Board.
Chairman Harrison requested that the Board members e-mail Mr. Schenck by noon on Wednesday, July 29th with any changes or comments. The focus should be on the tax impact portion. This draft follows the format that has been used in the past.
On Page 2 of the draft regarding the scope of the project, Ms. Bratton questioned if an amount was known for a contingency budget. Mr. Schenck stated that it is usually 5% of the total project cost.
Ms. Bratton questioned that if they do not end up needing the contingency portion, where would that money go. Mr. Schenck stated that this money would be reduced off of the amount that the Town would bond.
On Page 3 of the draft regarding the impact on future operating budgets, Ms. Bratton questioned if there would be a smaller version of Library layoffs during construction. Mr. Schenck stated that there are significant budget impacts when the Library is into the construction phase. He stated that there are 7 full-time positions and 27 regular part-time positions. There is a big turnover regarding these part-time positions.
Regarding the part-time Library positions, Diane Carney, member of the Building Committee, stated that some positions are only 8 hours per week. The hours could be easily distributed.
Ms. Bratton stated that the impact on new non-personnel costs is estimated to be $11,174 in FY 11/12 and $93,918 in FY 12/13. She questioned why the number was so much higher in FY 12/13. Mr. Schenck stated that usually the biggest cost is related to energy. It may be that FY 11/12 is the spring quarter and FY 12/13 is a full year, which goes through the winter season.
On Page 4 of the draft regarding the bonds to cover the new cost of the project, Ms. Bratton questioned why it was labeled this way and if there was an old cost. Mr. Schenck stated that he will look into this, although this should be the same estimate. He believes the new and old costs are the same.
Regarding how the project will be funded, Mr. Eisenlohr stated that the Town Council has indicated to the Building Committee that if fundraising efforts fall short, they will need to make modifications to the project to complete it with the funding that is available. He questioned if there was a strategy in place if the fundraising came up short. Mr. Schenck stated that if the costs go over, then they would need to reduce the scope of the project. If the fundraising does not meet the $500,000 goal, this will also reduce the scope of the project. Mr. Gugliotti questioned if the project costs less than projected, who would benefit from the reduction. Mr. Schenck stated that the Town would benefit.
There was some discussion regarding interest rates. Mr. Hooper stated that interest rates are currently extremely low. Mr. Schenck believes that the State grant dictates how the project needs to be financed. He stated that there is also the issue of taxability of the bonds. He stated that the Town Council has recently set a limit on bonding at $8 million.
VI. NEW BUSINESS
09/10-01 Supplemental Appropriation: Library Temporary Parking Lot, $3,500
Mr. Schenck stated that this work will not be duplicated; it will only be enhanced further. He stated that the Library has scheduled several events throughout the year, which are very well attended. The current parking cannot handle these crowds. The Town Council has instructed the Library staff to come up with a plan for additional parking on Town owned land. This money is in place to do work to accommodate people until construction begins and then after construction is completed in terms of a crosswalk. This will also provide the base for the new parking lot, which will be completed as part of this construction.
In response to a question by Ms. Bratton regarding why there will be two separate referendums, Mr. Schenck stated that since recent budgets have been voted down on a fairly regular basis, the Town has increase the amount of money that is predicated upon one and possibly two additional referendums based upon budget defeats. He stated that there is sufficient funding to handle this particular referendum if there are not more than two referendums the following spring. Because of timing, Mr. Schenck stated that the Town Council decided on separate dates.
On a motion by Mr. Speich, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $3,500.00 from General Fund, Other Financing Sources, Undesignated Fund Balance, Account #01-0390-43913 to General Fund, Library, General Service, Account #01-6101-52185 for the purpose of constructing temporary improvements at the Library.
CERTIFICATION
This is to certify that there are sufficient Undesignated Fund Balance resources to finance the following appropriation.
The sum of $3,500 from the Town’s Undesignated Fund Balance from Account #01-0390-43913 General Fund, Other Financing Sources, Undesignated Fund Balance.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
09/10-02 Supplemental Appropriation: St. Ann’s Food Pantry, $6,175
Chairman Harrison stated that because he is a member of St Ann’s Church and because he is on the Council at St. Ann’s Church, he will not be taking part in this discussion.
Mr. Gugliotti stated that he is also a member of St. Ann’s Church, although he will be participating in this discussion. Mr. Hooper and Mr. Speich stated that although they are both members of St. Ann’s Church, they will also be participating in this discussion.
Mr. Martino stated that this food pantry is run by the Town of Avon and is housed at St. Ann’s Church. He stated that people are screened by the Social Services Department before they are able to use the food pantry. There are certain rules and regulations in order for people to qualify. The food pantry serves approximately 90 families a month. They service only Avon residents. Mr. Martino stated that most of the food is donated; the biggest contributor is the school system. Some funds are also donated to the food pantry. He stated that they have an account at Food Share in Bloomfield.
Mr. Martino stated that the church will be renovating their classrooms and would like to help renovate the food pantry at the same time. They will be charging the Town only for materials and not labor. St. Ann’s Church would like to see the food pantry stay in this location permanently. He stated that there is a separate entrance for the food pantry; it is not used by the Church for any of their activities.
Mr. Cooke stated that St. Ann’s Church is looking for the Town to fund the materials only for this renovation; the labor will be provided by the people of St. Ann’s. He stated that they have also received a grant for shelving, although this grant does not cover all of the costs. Some of these costs are included in the $6,175.
On a motion by Mr. Eisenlohr, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $6,175.00 from General Fund, Other Financing Sources, Undesignated Fund Balance, Account #01-0390-43913 to General Fund, Town Council, Regional Programs, Account #01-1101-52162 for the purpose of renovations to the Avon Food Pantry.
CERTIFICATION
This is to certify that there are sufficient Undesignated Fund Balance resources to finance the following appropriation.
The sum of $6,175 from the Town’s Undesignated Fund Balance from Account #01-0390-43913 General Fund, Other Financing Sources, Undesignated Fund Balance.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
09/10-03 Supplemental Appropriation: Magnet School Tuition for 2008-2009 school
year, $56,823.46
Mr. Franzi stated that this matter is driven from Sheff vs. O’Neill. This requires local education agencies to provide placement tuition for local residents who are attending magnet schools. They have required this funding to be ECS Holdback by Statute by the State of Connecticut Department of Education. He stated that the Town of Avon uses the CHOICE money that is from students coming into Avon. Last year, 21 students attended the new magnet school in Avon. Because of this, there is a short amount of funding coming from CHOICE to pay for these magnet school tuitions. Mr. Franzi stated that the Town did apply for the ECS Holdback to pay for the balance of this tuition. This was approved, although there was an error in accounting at the State of Connecticut. He stated that the request for $56,823.46 is the balance needed to complete tuition payments.
Ms. Bratton questioned if the $56,823.46 is the holdback amount. Mr. Schenck stated that it was. Ms. Bratton also questioned what the total amount is. Ms. Colligan stated the total amount is $1,243,373.
Mr. Schenck stated that the Board of Education did not accurately determine the number of students that would participate in this program when they set the budget. He recommended not to net the amount out, but to gross the amount of the grant and budget an estimate of the amount that will be needed. This amount can then be reimbursed out of the Board of Education’s budget and the Town can keep the ECS amount.
On a motion by Mr. Eisenlohr, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 08/09 Budget by increasing:
REVENUES
General Fund, Intergovernmental, Equalized Cost Sharing (ECS), Account #01-0330-43341 in the amount of $56,823.46
And increasing
APPROPRIATIONS
General Fund, Board of Education, General Service, Account # 01-9401-52185 in the amount of $56,823.46 for the purpose of funding Magnet School tuition for the FY 08/09 school year.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
09/10-04 Supplemental Appropriation: Interlocal Program Funding: Canton Social
Services Staffing, $8,900
On a motion by Mr. Gugliotti, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 09/10 Budget by increasing:
REVENUES
General Fund, Other Local Revenues, Interlocal Program Funding, Account #01-0360-43657 in the amount of $8,900.00
And increasing
APPROPRIATIONS
General Fund, Human Services, Service & Consultant, Account # 01-4203-52184 in the amount of $8,900.00 for the purpose of funding expenditures, which will be reimbursed through approved contractual agreement with the Town of Canton.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
VII. OTHER BUSINESS/TOWN MANAGER’S REPORT
Regarding the sewer project on Deepwood Road, Mr. Schenck stated that the bids came in higher than anticipated. This was because of several deep cuts that need to be made. He stated that the Town may come back with a different approach to this project.
Regarding the Administrative Study Committee, Mr. Gugliotti stated that the report has been approved by the Town Council. This report is to be used as suggestions for things the Town needs to look at. He feels that the Committee should continue in order to see if and how these things are getting implemented. Mr. Schenck stated that this item is on the Town Council’s agenda in order to continue this Committee for another year.
Mr. Gugliotti stated that the Board of Education is getting stimulus funds. He questioned if this matter would be coming before the Board of Finance or the Town Council. Mr. Schenck stated that the Board of Education will be going through both the Board of Finance and the Town Council in order to be approved. The Board of Finance should be looking at this as another grant; it will be approximately $700,000. Some of this money needs to be spent in certain ways. The Board of Education will be spending most of this money for technology work. The balance of approximately $230,000 will be available for whatever the Board of Education would like to use it for. They may possibly use it for budget reduction and hiring some of their teachers back. He stated that
timing may be an issue. Mr. Eisenlohr stated that the Board of Finance could address this issue at the September 3rd meeting.
On a motion by Chairman Harrison, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance hereby cancels the regularly scheduled meeting on August 24, 2009, and will reconvene at a special meeting on September 3, 2009.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
VIII. EXECUTIVE SESSION
Executive Session was not needed.
IX. ADJOURN
On a motion by Chairman Harrison, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:55 p.m.
Messrs. Harrison, Speich, Hooper, Eisenlohr, Gugliotti and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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