BOARD OF FINANCE
MINUTES
JANUARY 23, 2012
I. CALL TO ORDER: Town Clerk
Following the swearing in of new Board of Finance member Brian Stoll, Town Clerk Ann Dearstyne, called the meeting to order at 7:05 p.m. at the Avon Town Hall, Selectman’s Chambers. Members present: Chairman Thomas Harrison, Thomas Gugliotti, James Speich, Brian Stoll, Catherine Durdan, Margaret Bratton and Dean Hamilton.
II. NOMINATIONS AND ELECTION OF BOARD OF FINANCE CHAIR AND SECRETARY: Town Clerk
Ms. Dearstyne requested nominations from the Board for this year’s Chairman and Mr. Gugliotti nominated Thomas Harrison with a seconded motion by Ms. Durdan.
Messrs. Gugliotti, Speich, Stoll, Hamilton and Ms. Durdan voted in favor.
Ms. Bratton arrived to the meeting just after the vote but confirmed that she agreed with this decision and voted in favor.
Chairman Harrison stated that the Board must also nominate and elect a Board Secretary. State law obligates the Board of Finance to appoint a chair and a clerk, both being done already, but not a Secretary. The Town Charter says that each of the Boards has the authority to set its own rules and procedures in acquiring a Secretary. Chairman Harrison discussed that the “Secretary” title should be changed to “Vice-Chairman and Secretary”. It would recognize that in the past Tom Gugliotti has in fact acted as the Vice-Chair, acted responsibly and professionally, and filled in during the Chairman’s absence.
On a motion by Mr. Harrison, seconded by Mr. Speich and Ms. Durdan, it was voted:
RESOLVED: That the Board of Finance change the title of “Secretary” to “Vice-Chairman and Secretary.”
Messrs. Harrison, Speich, Stoll, Hamilton and Mmes. Durdan and Bratton voted in favor. Mr. Gugliotti abstained.
III. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mr. Stoll.
IV. COMMUNICATION FROM THE AUDIENCE
Mr. Stokesbury commented that they are in the interim of the budget process at this time and there was no new information to add.
V. MINUTES OF PRECEDING MEETINGS: December 19, 2011
In section III.- Change “Dr. Nestler Rusack” to “Dr. Nestler-Rusack” hyphenated. In the motion for the minutes of November 23, 2011- change to Ms. Durdan was “absent” not “abstained.” In section V., 11/12-05- change to “The consensus is at this time the public hearing and workshops will be held...” Within 11/12-14, first paragraph, change to “did not transfer any [instead of and] surplus”. Second paragraph, add “Avon’s Net” to statement making, “Mr. Robertson added that Avon’s net cost for Storm...” In the fourth paragraph change spelling from retires to “retirees.”
On a motion by Chairman Harrison, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance approve the minutes of December 19, 2011 as amended.
Messrs. Harrison, Speich, and Mmes. Bratton and Durdan voted in favor. Messrs. Gugliotti, Hamilton and Stoll abstained.
VI. OLD BUSINESS
11/12-05 Review and Discussion: FY 12/13 Budget Process
Mr. Harrison raised the idea of changing the Budget presentations and restricting the persons that make the presentations with one idea being to limit it to an elected official, the Town Manager or Superintendent. Ms. Durdan agreed a restriction would be a good idea with the exception being a chairperson. Mr. Harrison questioned if that meant not allowing department chairs, school principal or police chief. Mr. Speich mentioned that it might be worthwhile to have an additional person be allowed to speak if so chosen by the elected official. Mr. Stoll agreed that the person best suited to do the job should be given the opportunity to present their case. Mr. Harrison commented he agreed but would like to limit it in some way. Mr. Speich and Mr. Gugliotti commented that it should be at the discretion of the BOF Chairman. Ms.
Bratton questioned if there could be a general rule to follow with exceptions being submitted for approval. Mr. Harrison added that the reason for this is because the presentations are getting longer and preventing time for the public to speak. Mr. Harrison came to the conclusion that, in summary, the expectation is the Board Chairpersons will present the budget presentations. This can be delegated to the Chief Executive Officers but if someone other than these persons will be presenting they should coordinate it with the BOF Chairman beforehand.
Mr. Gugliotti took this opportunity to describe the Board of Finance member’s job description, including what is says in the Town Charter. Section 5 of the Charter says there is a Board of Finance, they serve without compensation and they have duties in regards to finance and taxation. Their specific duty of the BOF is to annually designate the public accountants (auditors). Section 9.4 describes how they do what they do. Some highpoints include: the BOF is required to hold one or more public hearings not later than 3 weeks before the annual budget meeting at which any elector or taxpayer can be heard. After the BOF public hearing(s) and consultation with BOE and the TC, the BOF makes revisions and essentially they are the mediators. The BOF is then required to recommend the budget as revised to the annual town
budget meeting. Under state law the BOF is not allowed to line item the BOE budget, they can only say the number should go up or down but cannot say where it comes from. With the Town Council side the BOF can say change a particular line item, etc. At the conclusion of the annual budget meeting the BOF adjourns the meeting. In the past the vote was made immediately after the discussion. Now there is a referendum that allows for a vote by the public. If the number of voters is less than 9% of the electors the budget is deemed approved regardless of the vote. Within 10 days after the approval of the budget, the BOF sets the mill rate, which is usually done right after the tallying of the votes. Under 9.4.2 (if the budget is turned down) there is a process for re-noticing and having another public hearing and then the BOF, after consultation with the BOE and the TC, determines what the new budget will be and makes modifications as necessary. Under 9.4.3 there may be no more than
2 referendums after a budget is turned down (totaling 3 referendums). After this point the BOF looks to the state statute that says the Board goes with the last year’s budget and Mr. Harrison clarified that the Town Charter states that if the budget is turned down twice then the Town Council sets the budget and they can set it at whatever they want. If that did not exist in the Charter then they would follow the State Statute.
Mr. Harrison commented that the phrase under 9.4.1, “After the public hearing, the BOF consults with the Town…” this is what’s known to the BOF as the budget workshops.
VII. NEW BUSINESS
11/12-15 Request for a Supplemental Appropriation- Board of Education
Mr. Robertson provided background materials detailing this request within an attached memorandum. He added that back in September there was a routine inspection of the rooftop units (RTUs) at the Roaring Brook School and it was found that 7 of them would need replacing before the heating season. This was an emergency situation and the funds, totaling $78,885, were found in the BOE operating budget. The BOE is requesting a supplemental appropriation to reimburse the operating budget for the unplanned and un-budgeted expense of replacing these units.
Ms. Bratton inquired how the AHS boiler situation went away and was it because of a legal resolution. Mr. Robertson answered that initially there was a report prepared by a consultant that stated the boiler needed to be completely replaced at the High School. As a result, this is where the $362,500 comes in; we were planning a full boiler replacement at the high school and funding it over the next 2 years. Currently, the budget is approved and the project is in the budget and the consensus began to emerge that, through these consultants, that a full boiler replacement was not necessary. Rather than a full replacement project, there were modifications made that fixed the boiler situation. Ms. Bratton also asked if that means it is automatically off of next years budget and Mr. Robertson said yes. Ms. Bratton questioned if
the remainder of the $362,500.00 after the $78,885 comes out, would go back in the budget. Mr. Robertson said no, the $280,000 would stay where it is. It is a capital project and the appropriation remains out there. Ms. Bratton commented that if the money is just going to sit there, if a project were to come up in the future could we use those funds. Mr. Robertson answered yes because the funding source has a lot in common with the initial funding source, it is a CIP project. Mr. Gugliotti added that it is great that we didn’t have to replace the entire boiler and it’s good that we have this money for something we may need. Mr. Robertson added it is a non-lapsing fund and there is no time limit on it.
Mr. Stoll asked if there are repairs recommended by the consultants and if so how much. Mr. Robertson commented that they have not gone to bid yet but he thinks around $25,000. Mr. Stoll also asked if all of the RTUs that needed to be replaced have been replaced or will more be coming up in the future. Mr. Robertson responded that they did a cost benefit analysis and it came back they should all be done at once, so they did them all.
Mr. Speich commented that he disagreed and felt the $283,000 out there is, he believes, a surplus and there are other capital improvement programs that should be funded that haven’t been. He believes it’s a good idea to keep some of that balance for a potential boiler replacement but there are other capital improvements programs that could use that funding. Mr. Gugliotti responded that it does allow for discussion for later use for capital programs but right now it is just stating where it is. Mr. Speich asked if it had to be boiler or school related and Mr. Robertson responded no, that it can be accessed through approval of the Town Council and BOF to use elsewhere.
Ms. Durdan commented that the memorandum was very confusing as the $78,885 amount is never listed within the draft resolution.
Mr. Stokesbury from the BOE, BOF liaison and Chair of Capital Budget Committee, added that they have been carrying roof top units at Roaring Brook as a priority replacement item since 2005. Right now it is in excess of $200,000 in FY 13/14. Unsure if the number is net or gross but there are more rooftop units at Roaring Brook that will need to be replaced. The ones mentioned by Mr. Robertson are from the front building. In conjunction, the middle school also has a section of roof top units that will need to be replaced.
Mr. Speich added that the fire department has had a lack in funding, specifically the need for a new fire truck. There has been a list of items that has been carried for 5-10 years and that’s what he meant by how else we could use those funds. Mr. Gugliotti commented that he felt the replacing of the 7 units at Roaring Brook would take care of it all. Mr. Stokesbury answered that there is still one corner to be done and Mr. Robertson commented that that is new information to him. He was told it took care of all the RTUs at the school. Mr. Gugliotti asked if they knew of how many and Mr. Stokesbury said he did not but would find out. Ms. Bratton questioned if the Town Council was aware there were more that needed to be fixed and Mr. Robertson answered probably not because he was unaware. Ms. Roell commented
that there are units at every school that need to be replaced and Mr. Mala is working on a report of those units. Mr. Stokesbury commented that the capital request is at $283,000 to fix all that need repair or replacement. Mr. Gugliotti commented that if $283,000 is the amount for all of them then there are probably 14 more to go. Mr. Stokesbury added that because Roaring Brook was built over time the rooftops units have different characteristics, small and large. Ms. Bratton questioned if the $283,000 covers the remainder of the roof top units for all the schools or just Roaring Brook. Mr. Stokesbury answered that the $283,000 is for all of the units at Roaring Brook School only.
On a motion by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 11/12 Budget by transferring from Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, AHS Boiler Replacement, Account #02-4859-53100 To Capital Projects Fund (Facil & Equip), BOE CIP-Facilities, RBS HVAC RTU Replacement, Account #02-4859-53102 in the amount of $78,885.00 for the purpose of reimbursing the Board of Education operating budget for the unplanned and unbudgeted expense of replacing the “Roof Top Units” at Roaring Brook School.
Messrs. Harrison, Gugliotti, Speich, Stoll, Hamilton and Mmes. Bratton and Durdan voted in favor.
11/12-16 Supplemental Appropriation: Waggin 4 Wheels (Animal Control), $18,398.91
Chairman Harrison mentioned that this is a supplemental appropriation that will not come out of tax revenues and essentially will not cost anything. Mr. Robertson informed the Board that there was an error on the background information they were provided and the figure needs to be changed to $19,000. The reason for that is because there are two strings of funding, one is the $18,393.91 which is the amount that has been donated through fundraising and the other is the $601.09 which is coming from the sales of a surplus property, meaning there is a little bit of funding that does not come from fundraising. Mr. Speich commented that the memorandum says “the selected committee to reach its goal of $20,200.” Mr. Robertson commented that the memorandum is from December and is outdated. Mr. Gugliotti questioned
if Canton also paid for any of this and Mr. Robertson replied that they paid for the light system but the funding was primarily raised through Avon. Canton pays a small fee to use the vehicle. Mitchell Auto gave a very gracious contribution to the Town towards this vehicle.
On a motion by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 11/12 Budget by increasing:
REVENUES General Fund, Other Local Revenues, Donations & Grants, Private Sources, Account #01-0360-43651 in the amount of $18,398.91 and General Fund, Other Local Revenues, Sale of Property, Account #01-0360-43911 in the amount of $601.09 and increasing
APPROPRIATIONS General Fund, Canine Control, Vehicles, Account #01-2503-53311 in the amount of $19,000 for the purpose of purchasing a new Animal Control service vehicle.
Messrs. Harrison, Gugliotti, Speich, Stoll, Hamilton and Mmes. Bratton and Durdan voted in favor.
11/12-17 Presentation at Annual Budget Meeting
Covered in section VI. Old Business
VIII. TOWN MANAGER’S REPORT
- Monthly Financial Report Summary
Ms. Colligan presented the report for period ending 11/30/2011. Revenues for FY11/12 are exceeding FY10/11, property tax collections and license fees permits are both running ahead. There are some intergovernmental funds coming in at this point. Charges for services are running slightly ahead in the area of landfill permit fees, recreation fees, things of that nature. Other local revenues vary from year to year because larger components could be made up of miscellaneous revenues, which we received a lot of in FY 10/11. Interest rates are still pretty low. The General Fund balance has no major expenditure variances to report. There are no major expenditure variances. The BOE has reported, through mid-December, they are at a 44% expended ratio and they are projecting a positive balance. The internal
service and capital projects fund is within budget appropriations. The only emergency expenditure is with the sewer fund that is in relation to storm Irene which means there may be a future appropriation but will wait for FEMA reimbursement before taking that step. Mr. Stoll asked if there is any word on when the FEMA reimbursements should be expected and Mr. Robertson responded that they are hopeful it will be by the end of the Fiscal year. Mr. Robertson also added that Blum Shapiro will be present at the next BOF meeting to present the CAFR to the board.
- Administrative Services Study Committee Update
Mr. Gugliotti commented that the committee has discussed whether or not the committee should continue and that they are waiting to hear from the Town Council to see. Mr. Speich questioned if this is something that should be done with a public hearing. Mr. Gugliotti responded probably not. Mr. Speich clarified that notice should be made to the public.
- Health Insurance Sub-Committee Update
Mr. Robertson reported that the sub-committee has met twice and it has been educational. The meetings have included basic information, health insurance 101.
Mr. Gugliotti praised Ms. Colligan for achieving the CAFR for 27 years in a row.
IX. OTHER BUSINESS
There was no other business.
X. EXECUTIVE SESSION
The Board did not find an Executive Session was necessary.
XI. ADJOURN
On a motion by Mr. Harrison, seconded by Mr. Gugliotti, it was voted:
RESOLVED: That the Board of Finance adjourn at 8:33 p.m.
Messrs. Harrison, Gugliotti, Speich, Stoll, Hamilton and Mmes. Bratton and Durdan voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Vice Chairman /Secretary
Attest: Amber Lansing, Clerk
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