BOARD OF FINANCE
MINUTES
December 27, 2010
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:30 p.m. at the Avon Town Hall, Selectmen’s Chamber. Members present: James Speich, Catherine Durdan, William Hooper, Thomas Gugliotti, and Brett Eisenlohr.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mr. Harrison.
III. COMMUNICATIONS FROM THE AUDIENCE
There were none.
IV. MINUTES OF PRECEDING MEETINGS: November 22, 2010
Mr. Eisenlohr made an edit regarding an insertion of his agreement during the budget guidelines discussion.
On a motion by Ms. Durdan, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance approve the minutes of November 22, 2010 as amended.
Messrs. Harrison, Eisenlohr, Gugliotti, Speich, Hooper and Ms. Durdan voted in favor.
V. OLD BUSINESS
10/11-06 Discussion of FY 11/12 Budget Process
Chairman Harrison stated that, since the last meeting, he has had conversations with Mr. Robertson, Town Manager, and Mark Zacchio, Chairman of the Town Council, regarding not setting targets or guidelines, but having a neutral presentation of the Town’s fiscal condition going into the budget. He stated that this approach has been successful when done in other Towns.
Mr. Robertson stated that this would be a pre-budget development meeting, which could be either a single or multi board meeting. He stated that this is an opportunity for the Town Manager to give an overview from a financial perspective to the community; to give a budget forecast; and to outline the significant issues going forward.
Chairman Harrison questioned if the Board of Finance or Town Council would give any recommendations as a part of this joint meeting. Mr. Robertson stated that no recommendations are given; only the significant issues are discussed. He stated that this meeting would usually take place in November or December. Chairman Harrison stated that it is possible for Avon to have this joint meeting in early January if the Town Council agrees.
Chairman Harrison questioned how the Boards in other Towns use this data that would be received at this multi Board presentation. Mr. Robertson stated that they have gotten positive feedback from Boards in Glastonbury. He stated that they use this information as a reference.
Chairman Harrison encouraged the Town Council to go forward with this presentation.
VI. NEW BUSINESS
10/11-12 Review, Discussion & Approval: FY 09/10 Year End Transactions
Ms. Colligan reviewed the Town of Avon’s Final Fiscal Year Transactions for FY 2009-2010. She stated that the Town’s goal is to have positive operating results. She stated that tax collections are ahead of last fiscal year at 99.82%. She stated that the Town came in a favorable position on the expenditure side in the range of approximately $500,000. The Town is not asking for any use of Fund Balance to balance the FY 09/10 budget. She stated that between the positive operating results and the expenditures, the Town was able to cover the negative revenue variances and the two operating transfers in and also cover the use of Fund Balance that the Town had budgeted for approximately $148,000. Also, during the year, the Town had requested small amounts of Fund Balance that were appropriated for various
projects. Ms. Colligan stated that the Town did dip into the Fund Balance of approximately $130,000. She stated that the Town had positive operating results of approximately $30,000.
Ms. Colligan stated that, regarding Transfers and Encumbrances, this is a required resolution for budgetary and Charter compliance. The Town is not allowed to exceed their line item budget appropriations. These are transfers within the Town budget. She stated that per the Charter, the Board of Finance approves all transfers in excess of one-tenth of one percent of the budget.
Regarding Supplemental Appropriations General Fund, Ms. Colligan stated that there was only one appropriation. She stated that on the recommendation of the auditors, the Town did shift some expenditures that were in the Special Revenue Fund for State and Federal Grants. The auditors recommended that these be handled and reported in the General Fund.
Regarding Supplemental Appropriations Other Funds, Ms. Colligan stated that these are standard entiries; similar resolutions have been submitted to the Board of Finance in the past for grants. She stated that there are several STEAP grants that this Board is aware of. Ms. Colligan discussed several grants that the Town of Avon did receive this fiscal year. She stated that there was no impact on Fund Balance for General Fund.
Ms. Colligan stated, regarding Transfers & Fund Balance Designations, that there is one increase to a designation in the amount of $13,000. This is revenue that is received in the General Fund for sale of fixed assets that the Public Works Department receives from internet auctions. This is a way to build up a designation within the General Fund for Asset replacement.
Regarding Appropriations Undesignated, Unreserved, Designation & Reserved, Ms. Colligan stated that these are exceptional occurrences. She stated that the first two entries are timing issues between fiscal years for the Avon Middle School boiler. Ms. Colligan also reviewed the other entries with the Board members.
In response to a question by Chairman Harrison regarding the Board of Education’s Revolving Fund, Ms. Colligan stated that this fund does not go through the appropriation process; there is no requirement for transfers. She stated that this is a holding account. Ms. Colligan stated that there will be an analysis performed regarding this fund. Employee deductions, gate receipts and Pay to Play are associated with this account. The balance in this account varies as high as $800,000 to as low as $200,000.
The Board members had a discussion regarding the Boiler Resolution. Ms. Colligan stated that the resolution states, “To create the appropriation for recording the financial commitment made for the Avon Middle School boiler”. It also states, “For the purpose of reversing the amendment made to the 09/10 budget to be reversed in 10/11.” She stated that this is an accounting entry that needs to be done. This does not impact the General Fund; it impacts the Capital Projects Fund.
Ms. Colligan stated that the Town Council did approve the Final Fiscal Year Transactions FY 2009/2010 at their December meeting.
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 2009-2010 and as described in the memoranda from the Director of Finance to the Town Manager.
Messrs. Harrison, Eisenlohr, Gugliotti, Speich, Hooper and Ms. Durdan voted in favor.
10/11-13 Transfer of Appropriation:
AHS ADA Code Compliance Project, $18,504.70
Mr. Robertson stated that there was an initial appropriation of $27,900 in FY 2007/08 to complete Phase I of the ADA improvements. There were three payments against the AMS Boiler Project, which reduced the balance to $18,504.70.
Chairman Harrison questioned where the funds would go if there was any money left over from this project. Ms. Colligan stated that these funds would return to the General Fund. Mr. Robertson stated that there were discussions that the Town Council had regarding this issue. The Council agreed to approve this transfer of appropriation request, although they felt that there needed to be a policy regarding excess funds left in project balances.
On a motion by Mr. Gugliotti, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 10/11 budget by transferring from Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, Boiler Replacement – AMS, Account #02-4859-53022 to Capital Projects Fund (Facil & Equip), BOE CIP – Facilities, ADA Code Compliance Plan Corrections, Account #02-4859-53108 in the amount of $18,504.70 for the purpose of funding the preliminary architectural/engineering work in order to respond to the State (Phase II).
Messrs. Harrison, Eisenlohr, Gugliotti, Speich, Hooper and Ms. Durdan voted in favor.
VII. TOWN MANAGER’S REPORT
Monthly Financial Report Summary
Mr. Robertson stated that this Board discussed CREC at their last meeting. He stated that the Planning and Zoning Commission did approve a limited text amendment for the site to allow the number of students that they are looking to have at the school. There are still a number of regulatory steps that the applicant will have to go through including a Site Plan and Special Exception, which requires a public hearing.
In response to a question by Chairman Harrison regarding the Planning and Zoning Commission putting a more detailed agenda out, Mr. Robertson stated that he has talked to Mr. Kushner regarding this, which they will be working on. Also, if an application moves forward that could have a broad financial impact on the Town, this Board will be made aware of this.
Mr. Eisenlohr questioned if it would be appropriately possible to charge residents an administration fee if they choose to send their child to a CREC school. Mr. Robertson agreed to research this possibility.
Regarding the monthly financial report summary, Ms. Colligan stated that the highlights are positive. She stated that the Town is ahead in tax collections; license fees and permits also are ahead. She stated that regarding percentages and dollar amounts, the Town is holding their own. She stated that there is not a lot of Intergovernmental Revenue collected at this time of the fiscal year.
Ms. Colligan stated that, regarding expenditures, there are no major variances to report. She stated that the Town’s legal matters are coming more in line with what they are used to seeing. There are no charges to contingency. Also, the Board of Education has reported that all of their expenditures are tracking at the anticipated level. Ms. Colligan stated that Special Revenue Fund, Capital Projects and any funds that are run on a reimbursement basis are all tracking according to plan.
Regarding expenditures, Chairman Harrison questioned if fees were charged to people who ask for FOI (Freedom of Information) requests. Mr. Robertson stated that the Town can only charge for paper copies made in response to these requests.
The Board members had a discussion regarding FOI requests.
VIII. OTHER BUSINESS
Mr. Eisenlohr distributed a handout regarding Waterbury’s Debt Service to the Board members. He stated that the Town might be able to use this in combination with Municipal bonding insurance. Mr. Hooper stated that Avon currently has the highest possible rating. He stated that with State backing, the Town may have to pay a higher rate.
IX. EXECUTIVE SESSION
There was no need to go into Executive Session.
X. ADJOURN
On a motion by Mr. Gugliotti, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:45 p.m.
Messrs. Harrison, Eisenlohr, Gugliotti, Speich, Hooper and Ms. Durdan voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Alison Sturgeon, Clerk
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