BOARD OF FINANCE
MINUTES
SPECIAL MEETING
MAY 16, 2012
I. CALL TO ORDER
Chairman Thomas Harrison called the Board of Finance meeting to order at 8:19 PM at the Avon Senior Center. Members present: Chairman Thomas Harrison, Vice Chairman / Secretary Thomas Gugliotti, Margaret Bratton, Catherine Durdan, Dean Hamilton and Brian Stoll. James Speich was absent due to a death in the family. There was the presence of a quorum.
Mary Marinello was introduced as interim recording secretary for Amber.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was deleted from the agenda, no flag was present.
III. MINUTES OF PRECEDING MEETINGS:
April 9, 2012 Budget Hearing
April 11, 2012 Budget Workshop
April 23, 2012
Minutes from preceding meetings are held over to the next scheduled meeting. Minutes from the March 26th meeting previously approved at the April 23rd meeting were re-approved.
Communication from the audience.
Mr. Harrison asked if there was anything from the audience. No comments.
IV. OLD BUSINESS
11/12-05 FY 12/13Budget: Set Tax Rate (25.65 Mills)
We have to set the mill rate. Let the minutes reflect that the voters approved the referendum today. We exceeded the minimum turnout required by our Charter. There were 789 votes in favor and 404 against. That puts us in the administrative role of formally establishing the mill rate for the fiscal year beginning July 1 at 25.65 mills.
On a motion by Mr. Harrison, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance set the mill rate for the FY 12/13 at 25.65.
Messrs. Harrison, Stoll, Gugliotti, Hamilton and Mmes. Durdan and Bratton voted in favor.
V. NEW BUSINESS
11/12-26 Board of Education: Supplemental Appropriation Request $25,363 (Cafeteria Fund)
Prior, Mr. Robertson had given the board some background information. He was asked if he had anything to add. He directed the question to John Spang, Interim Director of Finance for the Board of Education.
Mr. Spang stated that this appropriation is for two pieces of equipment for food service/cafeteria, one at Roaring Brook School and one at Pine Grove School that have failed and they would like to replace them. The cost would come from the School Cafeteria Fund that started the year with a $225,000 balance. This would bring it down to $200,000.
Mr. Harrison asked if there were any questions.
Ms. Bratton asked for clarification that these monies would be coming out of the Cafeteria Fund. It was confirmed by Mr. Spang. Mr. Stoll asked if there was any salvage value to the items. Mr. Spang said he would have to check into that. One item has already been discarded, the second is still in place. He stated that he saw them, and they were in pretty rough shape. There may be scrap metal value, he will have to check.
On a motion by Mr. Gugliotti, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance hereby appropriates a sum not to exceed $25,363.08 from the School Cafeteria, Other Financing Sources, Unassigned (formerly Unreserved Undesignated) Fund Balance, Account #14-0390-43913 and to the School Cafeteria, Board of Education, Cafeteria, Account #14-9401-59600, for the purpose of purchasing and installing a steamer (Roaring Brook School) and display cooler (Thompson Brook School).
Messrs. Harrison, Stoll, Gugliotti, Hamilton and Mmes. Durdan and Bratton voted in favor.
11/12-27 Board of Education: Supplemental Appropriation Request $242,763.06 (unbudgeted revenue)
Mr. Spang stated that these are monies that last year would have gone into the Revolving Account. We don’t use that anymore. What would have happened is the expenditures would have been booked into the Revolving Account, but now and starting next year everything is in the General Fund. So we are asking for this money to go in and cover the expenses in the General Fund. Most of it is money from the City of Hartford for Choice students. They receive special education services and we bill them, $229,000 is for that. There is another large piece for the employee payroll deductions for life insurance and dental, and the other big piece is the Food Services Fund which produces about $9,000 for rent per month.
Mr. Harrison asked for questions and reminded everyone that this is not coming out of the General Fund.
On a motion by Mr. Gugliotti, seconded by Mr. Hamilton, it was voted:
RESOLVED: That the Board of Finance hereby amends the FY 11/12 Budget by increasing:
REVENUES
General Fund, Charges for Services, BOE Miscellaneous Receipts, Account #01-0340-43506 in the amount of $1,652.89; General Fund, Charges for Services, BOE Employee Bnft Contrib, Dent/Life, Account #01-0340-43505 in the amount of $7,470.89; General Fund, Charges for Services, BOE Cafeteria Rent Receipts, Account #01-0340-43510 in the amount of $9,957.28; General Fund, Charges for Services, BOE SPED Interdist Tuition Receipts, Account #01-0340-43513 in the amount of $223,682.00, for a total of $242,763.06.
and increasing
APPROPRIATIONS
General Fund, Board of Education, General Service, Account #01-9401-52185 in the amount of $242,763.06, for the purpose of recording unbudgeted revenues received to cover Board of Education operating expenditures.
Messrs. Harrison, Stoll, Gugliotti, Hamilton and Mmes. Durdan and Bratton voted in favor.
VI. TOWN MANAGER'S REPORT
A. Monthly Financial Report Summary
Mr. Harrison directed the attention to Ms. Colligan.
Ms. Colligan reported that we incorporated one of the changes that were recommended at the last meeting to now include appropriations. We are working on the other piece - a summarized version on how the town is doing as a percentage of the budget. She reported that the quarterlies for March are up on the web. The monthly financial report summaries are presented to the Town Council at their respective monthly meeting prior to the Board of Finance’s monthly meeting. There continues to be good news on the revenue side. She wanted to bring to their attention, on the inter-governmental section where we are showing 130% collected against the budget appropriation, and that strictly is a timing issue. It has to do with the first Board of Education supplemental that has already been approved, but at the
time this report was printed it was not reflected in our financials. When you see the next monthly financial report, you are going to see it settle down again because we increase the revenue appropriations for that same amount. The appropriation that the Board just approved tonight for the Board of Education, part of that is affecting different categories, on a temporary basis, so the Board is going to see that spike up too, until the timing of the appropriation is approved by the Board of Finance. That usually takes place the month following the recordings. She reported that soon the Board will start looking at end-of-year and other information.
Mr. Stoll asked for clarification that the appropriation is an “as of” as opposed to a target for the entire year. Ms. Colligan confirmed this. She also added it reflects any adjustments or transfers through the date of this report.
Mr. Stoll continued, and for property tax assessment, the percent collected is 99%. The collected is greater than the appropriation. Ms. Colligan confirmed this by stating that the way it works is the Town collects in advance, it can also collect for prior years, it also collects interest liens and fees. Those are not always subject to appropriation because as you will see at the next meeting, a suspense list will be presented. She reported that collections could exceed 100% because there are collections on prior years that are not part of the current year appropriation.
Mr. Stoll stated he was surprised since the collected is greater than the appropriation as a percent of assessments. Ms. Colligan stated yes, in this case we are talking about a category which includes other assessments other than tax assessments so even though the tax assessments can be in excess of 100% the whole category of property taxes and assessments include 8 different revenues and they are not all property taxes.
Mr. Harrison asked if the “collected through” column is all these specials and other things, whereas the appropriated is just what comes from the levy. Ms. Colligan responded that is incorrect. In this case the appropriation is for this category, but there are certain areas that are not in the budget appropriation. We budget supplementals pretty conservatively by nature. And we collected, if you go look at the detail list for March, in excess of 100% for those individual line items.
Ms. Colligan reported that the percentage of expenditures, fund balance as a percentage of budgeted expenditures, is down slightly from what is presented here because she thought the Board would be interested in the more current amount. The Board may recall there was a Board of Education appropriation for about $88,000. Originally they asked for $163,000 from the Town Council, it was reduced to approximately $88,000. It was to use money that had been closed to fund balance in a prior year so once again because the appropriation is approved after the fact you get the report a month later; our fund balance as a percentage is now roughly 8.6 % vs. 8.8% which will be reflected in next month’s report.
Ms. Colligan reported that most of the rest of the expenditures are status quo. We are very lucky with all the unexpected storm activity as we anticipate being able to do a lot of transfers from fund to fund within the General Fund. She did not have a more current update on Storm Alfred, unless the Town Manager knows anything. He reported that the representative from FEMA came out, we are pulling all the paperwork together, and have had a meeting. We have received almost all the Storm Irene reimbursement at this point so we will be putting together a resolution for that and will be going to the General Fund, Sewer Fund, and Recreation Activities Fund because that is where those expenditures incurred came out of.
Mr. Robertson added, in terms of the balance of the FEMA money that is about all there is to report right now. He added that FEMA reshuffled the deck in terms of the project liaisons. We have a new project liaison and are told that this person really wants to wrap it up so that is what we are working towards.
Mr. Harrison asked for any other questions. There were none.
VII. OTHER BUSINESS
Mr. Robertson reported that those present may have seen an e-mail he sent around from Gary Mala with an announcement regarding a workshop that is coming up for the Connecticut Association of Boards of Education. As you probably know, a member of the Board of Finance can sit in on the upcoming teacher negotiations. Gary sent that notice to see if there was any member of the Board who would like to attend and maybe get involved in auditing the negotiations process.
Mr. Harrison responded that he thought Mr. Gugliotti was interested. Mr. Gugliotti commented that Mr. Hamilton was interested. Mr. Hamilton reported that he wanted to talk with Ms. Bratton to get a little more detail, but thinks it may be a good year for Mr. Gugliotti to take on this role and he will do it another time. It was suggested that if there was a session that Mr. Gugliotti was unable to attend, then Mr. Hamilton could fill in so that the Board would always have someone there.
There was discussion as to how the formal invitation process works. Ms Bratton reported that this is the first time that the Board of Finance is invited to the class and believes that there will be only one member going to the class. Mr. Harrison reported that he would like to formally advise Mr. Mala that Mr. Gugliotti will be the observer designated from the Board of Finance.
VIII. ADJOURN
On a motion by Mr. Gugliotti, seconded by Mr. Harrison, it was voted:
RESOLVED: That the Board of Finance adjourn the meeting at 8:35 p.m.
Messrs. Harrison, Stoll, Gugliotti, Hamilton and Mmes. Durdan and Bratton voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Secretary
Attest: Mary Marinello, Interim Clerk
| 
