BOARD OF FINANCE
MINUTES
REGULAR MEETING
January 25, 2010
I. OATH OF OFFICE
Mr. Gugliotti, Ms. Durdan and Ms. Bratton were sworn in by Ms. Dearstyne, Town Clerk.
II. CALL TO ORDER
Chairman Harrison called the regular meeting to order at 7:30 p.m. in the Selectmen’s Chamber at the Avon Town Hall. Members present: Margaret Bratton, Catherine Durdan, Thomas Gugliotti, William Hooper and Brett Eisenlohr.
III. NOMINATIONS AND ELECTION OF BOARD OF FINANCE CHAIR AND SECRETARY: Town Clerk
On a motion by Ms. Durdan, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance voted to elect Mr. Harrison as the Chairman of the Board of Finance.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
On a motion by Mr. Harrison, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance voted to elect Mr. Gugliotti as Secretary of the Board of Finance.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
IV. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Ms. Bratton.
V. COMMUNICATIONS
There were none.
VI. MINUTES OF PRECEDING MEETINGS: November 23, 2009
Several edits were made to the minutes.
On a motion by Mr. Harrison, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: That the Board of Finance approve the minutes of November 23, 2009 as amended.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
VI. OLD BUSINESS
08/09-12 Status Report: FY 08/09 Audit
Mr. Robertson, Town Manager, stated that the auditors, Blum Shapiro, are in the process of completing the audit for FY 08/09. He stated that the Finance Department is working on the final draft of the Comprehensive Annual Financial Report.
In response to a question by Chairman Harrison, Ms. Colligan, Finance Director, stated that they have had an initial meeting with the Board of Education to review their software. The Town will be moving toward sharing their financial system files; the Board of Education will have read only access. She stated that this will also help the Town to look at their reports and learn how they work. The Town has also made some changes in their bank reconciliation accounts; more changes on the Board of Education side will also be made.
09/10-12 Review and Discussion: FY 10/11 Budget
Chairman Harrison stated that this item is on the agenda tonight to give any Board member an opportunity to comment or raise concerns regarding the upcoming budget meetings.
Mr. Gugliotti suggested that the Board of Finance members reflect on certain issues that they have had in past years. He suggested having a clock for people who want to speak at the public hearing. This will allow people to speak for the same amount of time. He also feels that only voters should be allowed to talk, although he is encouraged when high school students and others want to be heard.
Chairman Harrison stated that the Board can discuss rules and procedures for people to follow at the public hearing at the next regularly scheduled Board of Finance meeting. He questioned what the time requirements were for publication notice prior to the public hearing. He suggested that the rules that the Board members may decide upon can also be noticed. Mr. Robertson stated that he would check on notice requirements prior to the next meeting.
Ms. Durdan stated that she would like to have a laptop and screen for the upcoming budget workshops that will be held after the public hearing. In the past, they have used a blackboard. Ms. Colligan stated that she is working on this issue. They will be putting formulas and templates onto the laptop for the Board members to use at these upcoming meetings.
VII. NEW BUSINESS
09/10-13 Supplemental Appropriation: Farmington River Enhancement Grant Program: Low Impact Design Guidelines and/or Regulations: $25,000
Mr. Robertson stated that this is the first installment of a $50,000 grant. This grant is for managing storm water in a more natural way. He stated that a consultant should be on board shortly.
On a motion by Mr. Eisenlohr, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 09/10 Budget by increasing:
REVENUES
CNREF, Intergovernmental – Low Impact Design, Farmington River Enhancement, Account #03-0330-43325 in the amount of $25,000
And increasing
APPROPRIATIONS
CNREF, Low Impact Design, Farmington River Enhancement, Temporary Part time, Account # 03-4939-51014, in the amount of $21,000; CNREF, Low Impact Design, Farmington River Enhancement, FICA, Account #03-4939-51031, in the amount of $3,694; CNREF, Low Impact Design, Farmington River Enhancement, General Service, Account #03-4939-52185, in the amount of $306, for the purpose of hiring a firm and to initiate the project in accordance with the Department of Environmental Protection contract.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
09/10-14 Supplemental Appropriation: JAG Grant: $30,000
On a motion by Ms. Bratton, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 09/10 budget by increasing:
REVENUES
Capital Projects Fund (Facility and Equipment), Intergovernmental, ARRA Recovery Justice Assistance Grant, Account #02-0330-43369 in the amount of $30,000
And increasing
APPROPRIATIONS
Capital Projects Fund (Facility and Equipment), Town CIP-Equipment, Auto External Defibrillators, Radars/Lasers, Account #02-4844-53075, in the amount of $30,000, for the purpose of purchasing seven defibrillators, a radar unit, and a laser unit.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
09/10-15 Review, Discussion and Approval: FY 08/09 Year End Transaction
As an overview, Ms. Colligan stated that one of the goals is to have a positive operating result, which the Town did have. She stated that they also added to the Town’s reserves with a 7.28 percent rate of fund balance to general fund expenditures. She stated that the Town’s tax collection rate for FY 08/09 was very good; this was 99.81 versus 99.83 in FY 07/08. The Town is currently slightly ahead in their collection rate.
Ms. Colligan stated that there was some budget stress in the 08/09 budget, which they continue to see in the current budget in several areas. These three areas are: recording and conveyance; interest income; and building permits. She stated that not only did the Town need to cover their expenditures that were budgeted, they also needed to cover the projected revenue shortfall. She stated that the Town was able to do this.
Ms. Colligan stated that the Town, once again, closed some capital projects, which they have also done in prior years. She stated that these are projects that have been completed; they are turned back over to the general fund or to their respective funds. She stated that the Town also returned some capital fund equity out of the fund. This is made up of prior year bond premiums, interest income, note sales, etc. Because the Town is facing a revenue shortfall in the 08/09 budget and because the Town is trying to achieve growth in the fund balance, the Town did call those notes in. As a result, the Town did have positive operating results. Ms. Colligan stated that the Town added over $300,000 to the General Fund, Fund Balance; they were also able to add to some reserves. The Town also put some money
aside for OPEB and for the Capital Asset Replacement.
Ms. Colligan stated that most of the entries in the Final Fiscal Year Transactions FY 2008-2009 are standard entries; a lot of this is administrative housekeeping. She stated that, per the Charter, the Board of Finance approves in excess of one tenth of one percent of transfers. She stated that this Board approves transfers that are in excess of approximately $18,000.
Mr. Robertson stated that all communities are experiencing the same kind of stress regarding investment income. In some communities, like Avon, collections are strong. He stated that heading into next year’s budget, the big issue will be the Grand List.
On a motion by Mr. Gugliotti, seconded by Mr. Hooper, it was voted:
RESOLVED: That the Board of Finance hereby approves the Fiscal Year End Transactions: Transfers, Supplemental Appropriations, Designations and Appropriations from Fund Balance as outlined in the booklet Final Fiscal Year Transactions FY 2008-2009 and as described in the memoranda from the Director of Finance to the Town Manager.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
Chairman Harrison thanked Ms. Colligan and her staff for all of their hard work.
IX. OTHER BUSINESS/TOWN MANAGER’S REPORT
Ms. Robinson, Assistant Town Manager, stated that the Town in moving forward with the library project. They have finished the schematic design and have sent out an RFP for a construction manager. They have received 19 proposals for that RFP. She stated that the Town also sent out an RFP for temporary space to move the library during construction. The Town has received one proposal on Security Drive, which she is hopeful will work, although they continue to pursue this issue.
Ms. Robinson stated that the library project will go out to bid in June. She is hopeful that the contract will be signed in August so that construction may start in September. She stated that it is important for the Town to get approval from the Bond Commission no later than the end of March. If the Town does not get this approval, they will need to decide how to move forward.
X. EXECUTIVE SESSION: Litigation/Negotiation
On a motion by Mr. Gugliotti, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance go into Executive Session at 8:17 p.m.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
On a motion by Ms. Bratton, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance come out of Executive Session at 8:47 p.m.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
XI. ADJOURN
On a motion by Mr. Hooper, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:48 p.m.
Messrs. Harrison, Eisenlohr, Hooper, Gugliotti and Mmes. Bratton and Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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