BOARD OF FINANCE
MINUTES
MAY 11, 2011
I. CALL TO ORDER
Chairman Harrison called the special meeting to order at 8:15 pm at the Avon Senior Center. Members present: Chairman Tom Harrison, Brett Eisenlohr, James Speich, Brandon Robertson, Catherine Durdan, Bill Hooper and Margaret Bratton. Tom Gugliotti is absent this evening for a family function and has an excused absence.
Chairman Harrison stated that the voters ratified the decision that the Board made with 1,420 votes for YES, 567 NO, and an absentee ballot of 37 YES and 24 NO.
II. PLEDGE OF ALLEGIANCE
Ms. Bratton moved that the Pledge of Allegiance be excused due to the lack of a flag. Mr. Eisenlohr seconded the motion, which was unanimously approved.
III. MINUTES OF PROCEEDING MEETINGS:
January 24, 2011
The January 24th minutes were reviewed at previous meetings. Alison has revised the minutes to meet Chairman Harrison’s requests. Ms. Durdan asked a question regarding her previous comments about the budget and Alison agreed to change the specified section.
On a motion by Mr. Speich, seconded by Ms. Durdan, it was voted:
RESOLVED: that the Board of Finance approve the minutes of January 24, 2011 as written.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
March 28, 2011
Ms. Bratton requests to add to section IV that she did vote in favor of the finalized March 28, 2011 minutes as she had expressed she had no new changes. Ms. Bratton also questioned whether or not the link request mentioned in Section VIII- “Other Business”- regarding key local and national economic statistics, had been done. Mr. Robertson responded it had and gave instruction on how to navigate to it on the webpage.
On a motion by Mr. Eisenlohr, seconded by Ms. Durdan, it was voted:
RESOLVED: that the Board of Finance approve the minutes of March 28, 2011 as amended.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
April 4, 2011 Budget Hearing
On a motion by Ms. Bratton, seconded by Ms. Durdan, it was voted:
RESOLVED: that the Board of Finance approve the minutes of the April 4, 2011 Budget Hearing.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
April 6, 2011 Budget Workshop
Ms. Bratton requested 2nd page, 3rd paragraph to change the summarizing of “many other things” to “federal state and economic into consideration”.
On a motion by Ms. Bratton, seconded by Mr. Eisenlohr, it was voted:
RESOLVED: that the Board of Finance approve the minutes of the April 6, 2011 Budget Workshop as amended.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
IV. OLD BUSINESS
10/11-06 FY 11/12 Budget: Set Tax Rate (25.04 Mills)
Chairman Harrison stated that the referendum has been approved by a significant vote adopting the Board of Finance’s recommended budget. It is now the duty of the Board of Finance to set the mill rate to 25.04 Mills for the fiscal year starting July 1st, 2011.
On a motion by Mr. Speich, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance set the Tax Rate at 25.04 Mills.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
V. NEW BUSINESS
10/11-19 Supplemental Appropriation: Avon Education Foundation Grant, Avon Senior Center, $1,500
Mr. Robertson has previously provided the explanatory information. No new information.
On a motion by Ms. Bratton, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 10/11 Budget by increasing:
REVENUES
Recreation Activities Fun, Other Local Revenues, Donations & Grants, Private Sources, Account #09-0360-43651 in the amount of $1,500.00 and increasing:
APPROPRIATIONS
Recreation Activities Fund, Senior Citizens, Equipment, Account #09-5301-52194 in the amount of $1,500.00 for the purpose of funding iPad purchases, which will be reimbursed through an Approved Avon Education Foundation Grant.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
10/11-20 Supplemental Appropriation: Avon Education Foundation
Technology Grants to the Avon High School ($2,174), Roaring
Brook School ($1,941) and Thompson Brook School
($30,172.48): $34,287.48
Mr. Robertson has no new information to add.
On a motion by Ms. Bratton, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 10/11 Budget by increasing:
REVENUES
State and Federal Education Grants Fund, Other Local Revenues, Donations & Grants, Private Sources, Account #13-0360-43651 in the amount of $34,287.48 and increasing
APPROPRIATIONS
State and Federal Education Grants Fund, Board of Education, AEF Grant Program, Account #13-9401-59203 in the amount of $34,287.48 for the purpose of recording grants received from the Avon Educational Foundation for Avon High School, Thompson Brook and Roaring Brook School for purchasing technology equipment.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
10/11-21 Supplemental Appropriation: Walmart Bike Patrol Grant to the
Avon Police Department, $1,000
Mr. Robertson stated it was pretty straight forward and really no new information.
On a motion by Mr. Eisenlohr, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance herby amends the FY 10/11 budget by increasing:
REVENUES
General Fund, Other Local Revenues, Donations & Grants, Private Sources, Account #01-0360-43651 in the amount of $1,000.00 and increase
APPROPRIATIONS
General Fund, Patrol Services, Materials-Other, Account # 01-2107-52239 in the amount of $1,000.00 for the purpose of purchasing mountain patrol bikes for the Avon Police Department.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
VI. TOWN MANAGER'S REPORT
A. Monthly Financial Report Summaries
Mr. Robertson described the two state plans, “Plan A”: is still contingent based on the employee unions coming through, and “Plan B”, which would include massive reductions including; termination of state agencies such as the State Library, 10 million dollars out of the University of Connecticut Health Center and Municipalities would see a significant reduction. If “Plan A” is successful in its current configuration we could be about $100,000 ahead with revenue projections for FY 12. If “Plan B” passed would be about $140,000 in the red compared to original FY 12 revenue projections.
Mr. Hooper questioned if everybody is going get to get a 10% cut. Mr. Robertson answered that it is roughly proportional, based on amounts of aid that we are currently receiving now. Mr. Hooper questioned if it would be both educational and town. Mr. Robertson answered it would have a significant reduction for town and road on the revenue stream and education funding as well would have to be reduced to get to the kinds of reductions. Ms. Durdan questioned if they have any idea what that amount would be? Mr. Robertson stated that when thinking of state aid as a percentage of the total operating budget you’re basically looking at a net of 2.7 million to a 73 million dollar operating budget. Proportionately to us it is a relatively small amount.
Mr. Hooper questioned if the $140,000 is both ECS and town? Mr. Robertson explained it is all combined. Ms. Durdan questioned Plan B and the horse guards. Mr. Robertson explained that yes, if Plan B is adopted than funding for both horse guards would be eliminated. Ms. Durdan questioned if the Town of Avon would consider buying the property. Mr. Robertson responded that the state rarely disposes of property and if so there is a statutory process to follow, which includes advertising the availability of the property to other state agencies. Also, the current zoning of the horse guards is open space recreation and if there were any potential development it would have to go through a zone change.
Mr. Speich questioned how the 10 million dollar reductions would affect the Medical Center and paramedic services? Mr. Robertson answered that EMS service in Avon has a 2 tier contract in system- AMR and UConn. UConn provides the heavy duty paramedic services. Avon has contracts for both and AMR is a joint contract with Farmington. UConn’s contract is on a year to year “letter of agreement” basis and a flat fee of about $54,000. This year that decreased to $27,000/year with contingencies. There is discussion of possibly consolidating to UConn but they have said they don’t have the resources to do so.
Ms. Durdan commented that she has never been as concerned as she is this year. Mr. Robertson expressed agreement.
Ms. Colligan stated that the February and March reports, located in agenda, showed for current year revenues doing well in collections, building permit area, receiving one time revenues, and may receive some FEMA funds- around $32,000 from a January storm, doing well on the revenue side. A 1% appropriation was returned on the town side and Public Works is staying within budget appropriations. Quarterly report is now visible on the web.
VII. OTHER BUSINESS
Chairperson Harrison stated the Board of Education has selected Bill Stokesbury to be Board of Finance liaison and he is welcome as an honorary member.
Mr. Stokesbury stated that Gary Mala and himself have been on the job for 3 months. Gary has implemented good changes, most notably his suggestion to adopt 2 new standing committees; a Finance Committee that will meet monthly with Kathy Zirolli as the chair, and an Audit Committee which will meet quarterly to coordinate the Board of Finance and Auditors reviews and recommendations. They are also looking to switch and purchase new software. Chairman Harrison asked that all meeting minutes and packages be forwarded to Mr. Stokesbury.
Mr. Speich commented that he doesn’t want to lose input from the public relative to the ways of saving money for the town. He questioned a way to update and merge our town services with our education services, as Gary has mentioned in his weekly letter. Chairman Harrison stated that Tom Gugliotti is on that committee and he can make a note to find out status of the Shared Services Committee/Administrative Services Committee. Mr. Speich stated that he is most interested in merging the finance portions.
Mr. Eisenlohr questioned the email from Dennis Dix regarding the bond and whether the town should bond half or all now. There are laws regarding bonding and having a left over amount earning interest. Mr. Robertson stated that this is called arbitrage.
Mr. Eisenlohr stated that regarding a 2012 road bond; would it be possible to go out to bond for the roads now and put it in the bank for 2 years? Mr. Robertson answered no because we do not have an appropriation and would need to run that through the process including a referendum.
Mr. Robertson stated that he and Ms. Colligan have been working together with Mr. Dix to see what a debt service schedule would look like going forward. This is not officially in the budget book or formally into the 6-year plan. One potential project would be a big road bond.
Mr. Speich questioned what is the minimum for a bond? Ms. Colligan stated that for a debt policy it is 1/10 of 1% of the levy, which came out to about $600,000. You can do this without having to hold a formal town meeting. Mr. Robertson stated that you have a certain percentage of fixed costs and that’s why you see a lot of towns roll all projects up like a fire truck or road work because as a percentage it keeps the cost down. Chairperson Harrison stated that this was a suggestion in the past to have catch-all together to save costs.
Chairman Harrison questioned the need for a May 23rd meeting.
On a motion by Mr. Hooper, seconded by Ms. Durdan, it was voted
RESOLVED. That the Board of Finance does not need to meet for the May 23rd meeting and will meet in June.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
Chairperson Harrison stated that he received an email from a Mr. Mayer complaining that an email went out in April, with sound suggestions on how to manage budget because the budget they recommended would cause town to collapse. After checking, Chairman Harrison noticed it came in 2 days after the budget workshop. The email went out to all 3 boards and nobody responded. Chairman Harrison did respond respectfully today commenting that it was received and read and he respected Mr. Mayer’s opinion but did not find the email persuasive enough.
VIII. ADJOURN
On a motion by Ms. Bratton, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:50 p.m.
Messrs. Harrison, Eisenlohr, Speich, Hooper and Mmes Durdan and Bratton voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Amber Lansing, Clerk
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