BOARD OF FINANCE
REGULAR MEETING
MINUTES
MONDAY, SEPTEMBER 24, 2012, 7:00 P.M.
I. CALL TO ORDER
Chairman Thomas Harrison called the Board of Finance meeting to order at 7:00 PM at the Avon Town Hall. Members present: Chairman Thomas Harrison, Margaret Bratton, Catherine Durdan, Dean Hamilton, James Speich and Brian Stoll. Thomas Gugliotti and Bill Stokesbury (Board of Education liaison) were absent due to the mandatory mediation meeting for the teacher contract negotiations. There was the presence of a quorum.
II. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Thomas Harrison.
III. MINUTES OF PRECEDING MEETINGS:
April 11, 2012 Budget Workshop
Section III, page 4, 4th paragraph, 1st line: change to read - Ms. Margaret Bratton said that our town and school budgets should align with the many federal, state and local economic indicators.
Section III, page 4, 4th paragraph, 2nd line: add period after budget, delete “and”
Section III, page 4, 4th paragraph, 3rd line: change to read - She gave special thanks to Gary Mala and their team, because they have tackled some big issues and had some big accomplishments.
Section III, page 4, 4th paragraph, 4th line: delete “people” and change to read - She was pleased that residents
Section III, page 4, 4th paragraph, 6th line: change to read – first major Board of Ed employee one
Section III, page 8, 2nd paragraph, 1st line: move to end of last paragraph on page 7
May 16, 2012 Special Meeting
Section III, page 1, 2nd line: change to read – April 11, 2012
July 23, 2012
Section III, page 1, 1st line: delete apostrophe after negotiations
Section VI, page 4, 2nd paragraph, 7th line: correct spelling - “boing” to “being”
On a motion by Ms. Bratton, seconded by Mr. Speich, it was voted:
RESOLVED: That the Board of Finance approve the minutes as amended.
Messrs. Harrison, Hamilton, Stoll, Speich and Mmes. Durdan and Bratton voted in favor. Mr. Speich abstained from the May 16 and July 23 vote.
IV. TOWN MANAGER'S REPORT
Mr. Robertson introduced Mr. Dennis Dix of Dixworks, LLC, our financial advisor. As a consultant Mr. Dix assists with formulating, forecasting and modeling the towns’ debt. Mr. Dix discussed where Avon is positioned among the 21 Moody’s AAA rated communities in the state on a variety of data points that are looked at by investors and credit rating agencies. He announced that a report was received from Moody’s today with their written opinion and awarding Avon an Aaa rating.
Ms. Bratton stated that the Undesignated Fund Balance was at 6.3% in 2000 and at 7.4% in 2010. She asked for the current number. Mr. Dix stated that Avon is currently tracking at 8.1%. 10% is the goal.
Mr. Harrison asked Mr. Dix to comment on an analysis he wrote on the difference between a Aaa versus a lower rating on the Library bond that is about to go out and the resulting cost savings to the taxpayers. Mr. Dix states that interest rates are unbelievably low. Avon would have an average life in the bond issue of 9.4 years. They are normally paid off quicker than the stated life of 16 years. Marketwise we would expect 1.8% as a total average interest cost at the Aaa level. If we look at the Aa, it would be at 2%. The difference is 20 basis points. If you run that through the math it is a savings of about $133,000 over the life of the bond.
Mr. Harrison thanked Mr. Robertson, Mr. Bartha, Ms. Colligan and Mr. Dix for their hard work in preparing for the Moody’s meetings and favorable results.
Mr. Robertson gave a report that is reflected in the slides that are attached to these minutes.
Mr. Stoll requested that Mr. Robertson prepare alternative scenarios for potential budget increases based on Grand List growth projections (both a low and a high estimate) and compensation figures that are coming in after arbitration is complete. What is the potential gap? If we were to, or not to, contribute to Undesignated Fund Balance, how would that affect the gap projections? Mr. Harrison thought it might be premature prior to receiving the Board of Ed teacher numbers but meaningful to the upcoming budget discussions.
Ms. Colligan suggested that a document, Version D2, might be helpful as a beginning framework. She will forward it to Mr. Robertson.
- Monthly Financial Report Summaries
Ms. Colligan stated that the on site audit will not begin until October, but preliminary numbers indicate favorable revenues in all the categories. All revenues exceed 100% collected with the exception of Other Local Revenues. Her report is attached.
C. Miscellaneous
There was none.
V. COMMUNICATION FROM THE AUDIENCE
There was none.
VI. OLD BUSINESS
There was none.
VII. NEW BUSINESS
12/13-02 Board of Education: Supplemental Appropriation Request,
$48,901.99 (unbudgeted revenue)
On a motion by Mr. Speich, 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 Employee Bnft Contrib, Dent/Life, Account #01-0340-43505 in the amount of ($1,159.82); General Fund, Charges for Services,
BOE Open Choice Attendance, Account #01-0330-43343 in the amount of $5,372.00; General Fund, Charges for Services, BOE Misc. General Fund, Account #01-0340-43506 in the amount of $14,817.97; General Fund, Charges for Services, BOE Food Service Rent, Account #01-0340-43510 in the amount of $29,871.84, for a total of $48,901.99.
and increasing
APPROPRIATIONS
General Fund, Board of Education, General Service, Account #01-9401-52185 in the amount of $48,901.99 for the purpose of recording unbudgeted revenues received to cover Board of Education operating expenditures.
Messrs. Harrison, Hamilton, Stoll, Speich and Mmes. Durdan and Bratton voted in favor.
12/13-03 Review and Discussion: FY 13/14 Budget Process
VIII. EXECUTIVE SESSION
There was none.
IX. ADJOURN
On a motion by Ms. Durdan, seconded by Ms. Bratton, it was voted:
RESOLVED: That the Board of Finance adjourn the meeting at 8:52 p.m.
Messrs. Harrison, Hamilton, Stoll, Speich and Mmes. Durdan and Bratton voted in favor.
Respectfully Submitted,
Thomas A. Gugliotti, Secretary
Attest: Mary Marinello, Clerk
Presentation:
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