BOARD OF FINANCE
MINUTES
REGULAR MEETING
JUNE 27, 2011
I. CALL TO ORDER
Chairman Harrison called the meeting to order at 7:02 pm at the Avon Town Hall, Selectman’s Chambers. Members present: Chairman Thomas Harrison, Brett Eisenlohr, Brandon Robertson, Catherine Durdan, William Hooper and Margaret Bratton. James Speich and Thomas Gugliotti were absent.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Ms. Bratton.
III. COMMUNICATIONS FROM THE AUDIENCE
There was no communication from the audience.
IV. MINUTES OF PROCEEDING MEETINGS: May 11, 2011 Special Meeting
Chairman Harrison requested that changes be made to the previous meetings in regards to spelling. Page 4, section VII, “Gary Mala” not “Gary Niles” and “Kathy Zirolli” not “Cathy Durdan”.
On a motion by Ms. Bratton, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance approve the minutes of May 11, 2011 as amended.
Messrs. Harrison, Eisenlohr, Hooper, and Mmes. Durdan and Bratton voted in favor.
V. OLD BUSINESS
There was no old business.
VI. NEW BUSINESS
10/11-22 Approve Suspense List, $16,693.50
Deborah Fioretti, Collector of Revenue
Deborah Fioretti provided the annual review of the suspense list. Ms. Fioretti commented that this year is a little higher than last year and there have been quite a few larger businesses that have closed with a few smaller ones also. Chairman Harrison asked the status of the Avon Old Farms previous owners and Ms. Fioretti responded they are very well and are fully paid. She also stated most commonly it is with vehicles and people that are unable to pay. Mr. Harrison asked if college students moving to other states has any impact on the car taxes and Ms. Fioretti responded that yes, occasionally but mostly they are collected eventually. Mr. Harrison asked about using a debt collection agency and Ms. Fioretti responded that we have in the past but that they are mostly used in bigger cities.
There is nothing that we should take note of, the final amount is not any higher than it has been in the past. We are currently at 99.7% paid with a few more days to go. Mr. Harrison asked when are liens posted and Ms. Fioretti responded it was done last week.
On a motion by Ms. Bratton, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance approve the suspense list as submitted by Deborah Fioretti.
Messrs. Harrison, Eisenlohr, Hooper and Mmes. Durdan and Bratton voted in favor.
VII. TOWN MANAGER’S REPORT
Monthly Financial Report Summary
Ms. Colligan gave an overview of the monthly financial report. Under license fees and permits, as of May, building permits have exceeded 100% of what was budgeted which shows good positive movement. Intergovernmental is in good shape but we will wait to see what the governor has in store. Local revenues are showing rates that haven’t budged much in interest/income. There have been some significant one-time revenues this year such as with CIRMA, ICMA and FEMA reimbursement. There is no plan for use of these one-time revenues so they will go back in the General Fund.
Expenditure highlights exceeding budget appropriations include storm activities, until FEMA reimbursement is posted. Public Works has been able to absorb over expenditures, and legal has also exceeded budget but should be covered via transfers. A 1% return of appropriations was placed on General Fund/Town budget and will return roughly $178,000.00 to the General Fund. BOE budget will be available with May reports. Internal Service Fund is running under budget.
Mr. Harrison asked if we will finish without a deficit and Ms. Colligan responded yes. All the funds should be in good shape across the board.
Mr. Harrison commented that he attended a meeting that discussed the February auditor evaluation which determined that a closer look be taken into the BOE Revolving Account. Mr. Robertson went into detail about this explaining that there was a significant amount of activity in this account, which is just north of one million dollars, and it was suggested they take a closer look at it. A recommendation was made to close a portion of the balance, $420,000, to the Town’s Internal Service Fund. The reason for this is because those funds had come from a number of sources- primarily premium cost sharing. It left a sizable balance in the account so they developed a plan to find homes for that money which has taken place over half a dozen meetings since the beginning of the calendar year. These
balances are going to be closed out to a Special Revenues Fund, which is yet to be established. Some of the balance will also be closing/ posting to the operating budget to the BOE. It’s possible there may still be a portion remaining.
Mr. Harrison asked if these new changes would be in place to impact BOE decisions for next fiscal year. Ms. Colligan responded that for the 12/13 budget these special revenue funds will be in place. One concern is that the first year of building a budget with estimated activity may require doing end of year supplementals for adjustments. There will be ongoing discussions internally and with BOE to come up with a format that works. It may impact budget with a spike. We will need to be prepared to explain bottom line of budget changes and how it will affect taxes, end of year closing or supplemental appropriations to the BOE.
Mr. Harrison asked if this would be a one year transition. Ms. Colligan responded it would but if there are many transactions that complicate it they may need to find a different way of handling them. One other comment of the auditor was about reconciliation and the evaluation processes of looking at the BOE financial system, which indicates there may be a request from the BOE regarding that. Ms. Bratton asked if they need to do something with their system, would they need to make it more like the Town’s system. Ms. Colligan responded that they are still in the evaluation process of such programs.
Bill Stokesbury, BOE liaison, commented that the finance sub-committee of the BOE has been evaluating software because the current one has failed them. They are looking at “Admins” and “Budget Sense”. The finance committee will recommend “Budget Sense” to the Board. It is built for BOE where “Admins” is used at 3 other districts and at least 1 is very disappointed. “Budget Sense” is a proven product and mechanism and works well with the town’s system “Admins” and will be able to generate reports easier.
Mr. Harrison questioned when this will take place. Mr. Stokesbury responded that they expect to have funds in place from current year 10/11 to pay for the software and implement ASAP. They expect it will be used to build next year’s budget process and hopefully in place by January. Mr. Harrison questioned if there is money in the current budget to cover this cost? Mr. Stokesbury responded that money from the Revolving account Mr. Robertson mentioned could be used. Mr. Harrison questioned if it would involve any encumbrances. Ms. Colligan responded that at this point we are still early in closing the fiscal year; we are still posting accrual entries and agree that money is in that account. The technical process would be reclassifying revenue to amend the budget and fund the reserve
for encumbrances.
Mr. Stokesbury commented that a reverse auction process for buying products and goods, like computer hardware including desktops and laptops, has been implemented. They were able to purchase $195,000 worth of equipment for $134,000 with a significant savings of $61,000.
Updates/ Reports
There are now 33 residential building permits. This is up compared to the last 2 fiscal years, FY 10 there were 14 and FY09 there were 12. We are seeing an increase that will benefit revenue.
Of the 74 million dollar budget, our net take from the state is 2.7 million, a small amount compared to other municipalities. Mr. Harrison asked if there were any new mandates. Mr. Robertson responded there are no new mandates until 2014, which would require police officers videotape confessions for serious crimes. We have most equipment; impact is going to be nominal.
Mr. Hooper asked about a few months ago they heard of a 600-700 million surplus at end of year instead of a bond for spending purposes and if this has gone up, down or anything new? Mr. Robertson responded that the website “ct news junkie” had a blurb that is projecting a fiscal year surplus, how much and where from he doesn’t know. Mr. Hooper responded that with economy coming back, if they get another 600 million next year plus what they didn’t put into next year’s budget, they would have 1.2 million and wouldn’t have to lay off anyone.
Mr. Harrison asked how police vacancies are. Mr. Robertson commented there have been some vacancies but that a new officer was sworn in today- Jason Reardon. It is a long and tedious process to get a good candidate, they have to have a chip card (physical ability) background check, psychological exams, and it takes a while to fill vacancies. There is a high profile vacancy now open- the police captain.
Ms. Bratton asked if they are looking within. Mr. Robertson explained they are looking in and out because they are looking for the best candidate and that may come from outside.
VIII. OTHER BUSINESS
Ms. Bratton questioned if there is any talk on changing the position of assistant superintendent. Mr. Stokesbury commented that the Board has not met since the move of past superintendent. He does not expect the position to be eliminated but it will be refined to suit their current needs.
IX. EXECUTIVE SESSION
The Board did not find an Executive Session was necessary.
X. ADJOURN
On a motion by Mr. Eisenlohr, seconded by Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance adjourn at 7:49 p.m.
Messrs. Harrison, Eisenlohr, Hooper and Mmes. Durdan and Bratton voted in favor.
Respectfully submitted,
Thomas A. Gugliotti, Secretary
Attest: Amber Lansing, Clerk
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