TOWN OF COLCHESTER
BOARD OF FINANCE – REGULAR MEETING
TOWN HALL
127 NORWICH AVENUE
Wednesday, March 3, 2010 – 7:00 p.m.
MINUTES
MEMBERS PRESENT: Chairman Bruce Hayn, John Ringo, Cathy Pompei, Rob Tarlov, Mike Caplet, Rob Esteve
MEMBERS ABSENT: None
OTHERS PRESENT: Val Geato, Mark Decker, Kevin Kelly, John Chaponis, Walter Cox, Don Kennedy, Marc Tate, Ron Goldstein, BOE Chairman; Rosemary Coyle, BOS; Gregg LePage, Treasurer; Maggie Cosgrove, CFO; Gregg Schuster, First Selectman, Dot Morowka, Kate Byroade, Stan Soby, BOS
1. CALL TO ORDER: Chairman Hayn called the meeting to order at 7:00 p.m.
2. APPROVAL OF MARCH 3, 2010 MEETING MINUTES
** Note incorrect date of meeting minutes to be approved on posted agenda.
J. Ringo motioned to approve the minutes of the February 17, 2010 meeting minutes, seconded by M. Caplet. All members voted in favor with R. Esteve abstaining. MOTION CARRIED.
3. CITIZENS COMMENTS: Walter Cox, Chief, the Board should carefully consider a decision to rescind any federal grant as it could have an adverse impact on future grants.
4. ADDITIONS TO THE AGENDA:
J. Ringo motioned to move agenda item 10. 4 Presentation of audited financial statements - Scott Bassett, McGladrey & Pullen to this point in the meeting making it 4.1, add Discussion of Budget Survey as new agenda item 10.4, add as new agenda item 10.5 Briefing on combining Youth Services and Social Services. Motion seconded by. M. Caplet. All members present voted in favor. MOTION CARRIED.
4.1 Presentation of audited financial statements - Scott Bassett, McGladrey & Pullen:
The Audit went well this year. There were no significant issues detected. The deficit in the health insurance account was a bit of a concern at the time of the Audit but things have turned around and the fund is now in the black by $20,000. Tax collection rates have gone up which goes against the trend seen in other towns. He suggested that we consider raising our asset capitalization threshold. We are currently at $1,000 while most towns are at $5,000 to $7,500.
5. DEPARTMENT REPORTS:
5.1 Finance Department: Nothing
5.2 Tax Collector: Nothing
6. FIRST SELECTMAN’S REPORT
6.1 Selectman’s Agenda
6.1.1 Transfer Requests: None
6.1.2 First Selectman’s Update: Only update is the budget. Members received their copies tonight.
7. CORRESPONDENCE: None
8. LIAISON REPORT:
J. Ringo:
Town Clerk - Spoke with Nancy Bray and she is concerned that the part-time position in her department will be eliminated in the budget process. She is in need of new equipment and is applying for grants to purchase the items.
Police Commission- He was not notified of a meeting cancellation by the Department Administrative Assistant. He would like it noted that liaisons need to be notified in such instances.
M. Caplet:
BOE – He attended the BOE meeting while R. Esteve was out of town. Programs such as Enrichment, Physical Education/Health, and Music had positions cut in the original proposed budget. It is now being proposed to add a portion of the Enrichment and Music cuts back in. No decision on a budget to put forth has been made yet.
Park and Rec – Sat down with Jay Cohen and discussed the budget and how the program fund works. The Commission is considering closing R2 in 2011 for field improvements. The dog park is holding a reverse auction for fencing. They have raised $30,000 out of the $50,000 need for the dog park. The Commission will continue to work on their Strategic Plan in March.
R. Goldstein added that the bids for the track have been open. There are two reputable companies that have done previous tracks and submitted bids within the budget.
R. Esteve:
BOE – Attended a budget meeting. No transfers this month. Special Ed has had some mandatory changes in more costly directions. ECS cap gone from 70% to 82% and is on track. Colchester contracts with Learn for van transportation. There is a change in statutes stating that the District must use East Conn. Superintendent Loiselle is contacting Linda Orange and Eileen Daily to express concern. Have received valid bids for the OCR horns and strobes. Five of the seven unions that cover BOE are under negotiation this year. The ones that are not up this year consist of only 10 people. Received a letter from New England Associations of Schools and Colleges, Commission on Public Secondary Schools. They are pleased with some of the Districts achievements and recommendations we have
made but are concerned with the lack of development on time lines for facility and capital improvements.
G. LePage:
Treasurer - Received an $18,000 invoice for service fees. There was a $1500 error that brought it down by $3000. The bank has not been willing to change the service fees. They have not increased their fees in five years.
Other towns are in the same situation, interest earned not large enough to offset the service fees, so if they made a change for Colchester they would have to do the same for others.
9. OLD BUSINESS: None
10. NEW BUSINESS
10.1 Briefing on the status of 2011 Revaluation – John Chaponis: 2011 we have to do a reval. In 2001 every parcel was done at a cost of $300,000. In 2006 we did not do every parcel. Every property has to be done once within a ten year span. Mr. Chaponis is proposing him and his assistant target assessing 100 parcels per month. By 2011 when the Town would need to contract with a company to do the revaluation only 10% would remain for the company to do. . Statute allows written data mailers which will help to meet the 100 parcels per month goal. The cost of the revaluation would still be in $300,000. Mr. Chaponis believes by doing much of the work in house the cost would could be around $200,000 or as low as $180,000. Any assessments
that are done this year will be reflected on next year’s grand list. There is legislative talk to move the 2010-2011 revals until 2012. The disadvantage to the extension is that there is a cycle of 35 towns and by changing the year would increase the number of towns doing the reval at once and therefore increase the demand of the reval companies and the cost per parcel.
J. Ringo asked about foreclosures. Mr. Chaponis said that things are changing in the court system, allowing more time to pay, and lowering payments because of the poor economy. If the State decides to postpone will it be at the discretion of the town.
Personal Property Audits: There use to be $4,000 - $ 5,000 in the budget for personal property audits. The amount is down to $2000. Some of the audits do require professional services and many have not been done in the last few years. Mr. Chaponis believes that if more money was put in to the budget for personal property audits the Town would increase revenue from these items.
Chairman Hayn questioned the lower than estimated Grand List. Mr. Chaponis explained that the amount to be collected for motor vehicle tax decreased. People are buying cheaper cars or getting rid of the number of cars they own. The last couple years there have been developments being built that were expected to be completed by now, such as the Keystone Shops. He could not have predicted that Keystone development would still not be done just as he could not have predicted that only 2 houses would be built in White Oak subdivision. There are a number of residents that have started home improvements and then just stopped do to the poor economy.
10.2 Presentation on road maintenance – Mark Decker: The goal is to preserve and maintain the infrastructure. According to the latest GASB inventory, the value of the Town’s roadway system is approximately $150,000,000. Preserving the roads is where money is saved. The right preservation method applied to the right road at the right time is critical. Various types of preservation methods were explained. If roads can be kept in excellent condition then roads are easier to travel on, easier to plow, as well as quicker response time for emergency vehicles.
Chairman Hayn asked what the average dollar amount needed in the budget every year to catch all roads up on preservation as well as maintain ones as they are preserved. Mr. Decker said he did not have a figure at that time and said that because the Town has not kept up with the preservation process 1.1 million dollars would be needed to get caught up. The cost would then be $300,000 or $400,000 each year.
10.3 Discussion on joining a library consortium – Kate Byroade: On average twice a month the computer system fails. A library employee is usually able to repair the problem. Costs tied to re-builds and lost productivity are $11,369.92. Next year the company will no longer provide the system. Ms. Byroade discussed the benefits of joining consortia as well as the savings. The first year cost is $30,353. Operational cost of the current system is $48,127.21. There will be no maintenance or responsibility to the Town for the network. Her recommendation is to pursue Library Connection Members consortia. . Marc Tate said the cost for changes the Town will need to make to support the network can be done for approximately $200.
10.4 Discussion of Budget Survey: The survey will be completed soon and ready for distribution
10.5 Briefing on combining Youth Services and Social Services – Val Geato: Social Services have funding for 20 hours. This is not enough and citizens are not receiving the services they need. Social Services and Youth Services help many of the same families. By combining the services Social Services would have more hours of coverage allowing for the food bank to be a fully staffed. A combination of services is common practice in other towns. There are no union issues. Volunteers would still be needed as they are now.
11. ADJOURNMENT: R. Esteve motioned to adjourn, seconded by J. Ringo. All members present voted in favor. MOTION CARRIED.
Chairman Hayn adjourned the meeting at 9:30 p.m.
Dawn LePage, Clerk
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