TOWN OF COLCHESTER
BOARD OF FINANCE – REGULAR MEETING
TOWN HALL
127 NORWICH AVENUE
Wednesday, January 6, 2010 – 7:00 p.m.
Members Present: Chairman Hayn, John Ringo, Cathy Pompei, Rob Tarlov, Rob Esteve
Members Absent: Brian Smith
Others Present: Maggie Cosgrove, CFO; Gregg LePage, Treasurer; First Selectman Gregg Schuster; Rosemary Coyle, BOS; Ron Goldstein, BOE Chairman/Liason; Dot Morowka, Mike Caplet
1. CALL TO ORDER: Chairman Hayn called the meeting to order at 7:00 p.m.
2. MINUTES OF PREVIOUS MEETING
2.1 December 16, 2009 Regular Meeting: J. Ringo motioned to approve the December 16, 2009 regular minutes, seconded by C. Pompei. R. Tarlov wished to amend the minutes under Item 8. Liaison Report, Sewer and Water, to read that Regulations have been proposed…. J. Ringo amended his motion to approve the December 16, 2010 regular minutes with the amendments, seconded by C. Pompei. All members present voted in favor. MOTION CARRIED.
2.2 Amendment of the December 2, 2009 Regular Minutes (R. Esteve – term to expire 11/21/11): J.Ringo motioned to amend the December 2, 2009 regular minutes to reflect R. Esteve’s term to expire November 21, 2011, seconded by C. Pompei. All members present voted in favor. MOTION CARRIED.
3. CITIZENS COMMENTS: Dot Morowka questioned a rumored discrepancy on the paint color of the old
fire house and wondered who would fund the re-painting. First Selectman Schuster reassured her that any
painting done to the old fire house during the renovation process would be paid for out of the grant obtained
for such purpose.
4. ADDITIONS TO THE AGENDA: None
5. DEPARTMENT REPORTS
5.1 Finance Department:
• The expected compensation insurance premium increase has been reduced from 17% to 12.5%.
• A quote of an 8% increase was received for health insurance fees from Anthem for the 2010-11 budget year. This is better than expected. Along with the quote, a credit in the amount of $10,000 was received to reimburse us for time spent researching and resolving the stop loss over payment issue from earlier in the budget year.
• A re-cap of an issue discussed at the BOE finance committee was given by Maggie and Ron Goldstein, $1.9 million in EKC grant money will now be received from the Federal Government thus reducing the amount coming from the state by $1.9 million. The Board of Education will not be allowed to reflect this amount in any future budget documentation as a result of this change. They will still have the $1.9M available to them but concerns were raised over how this should be reflected in future budget communications and financial reports so as to not confuse the general public. Maggie will work on potential wording for next month’s agenda.
5.2 Tax Collector: The cash collection report was distributed and reviewed.
6. FIRST SELECTMAN’S REPORT:
6.1 Selectman’s Agenda:
6.1.1 Transfer Requests: None
6.1.2 First Selectman’s Update:
• Based on estimates, the town is currently at 54% of the snow removal budget at this time.
• Mike Caplet, Administrative Assistant, will be leaving his position. First Selectman Schuster is currently reviewing resumes for the vacancy.
• There are two union contracts that will be negotiated over the next few months along with the newly formed library union.
6.1.3 Discussion of Legal Services:
• A break down of the legal and negotiation costs were analyzed. A large portion of the cost has been
spent in litigation involving the ongoing Prezkopski appeal. A new appeal requiring additional
litigation costs is also anticipated.
• Legal services are frequently used for what First Selectman Schuster referred to as Human Resource issues. He is currently working with Superintendent Loiselle on a possibly hiring a Resource Consultant in lieu of legal services for HR activities. The person would be a less costly alternative for consultation on lower level legal matters. He also really believes that other legal firms should be considered for town attorney. Chairman Hayn would like to see reports such as this on a more frequent basis.
• The possibility of budgeting legal fees separately under each department was also discussed so there is more transparency around this high cost line item. The difficulty with this concept is that Planning and Zoning has to defend even the most frivolous of lawsuits in the best interest of the town. They have little control over these legal costs.
7. CORRESPONDENCE: None
8. LIAISON REPORT:
R. Tarlov:
Sewer and Water: Mark Decker, Public Works Director, spoke at a recent BOS meeting on the proposed stream flow regulations. The change in regulations either has to be implemented as passed or be stopped. The regulation change could stop the expansion of the sewer and water line, therefore, hindering economic development and presenting a material financial burden. Chairman Hayn would like to see BOF get involved. The BOS is sending a letter to Paul Stacy and it was suggested by R. Tarlov that the BOF write a letter focusing on the financial aspects of it. R. Tarlov motioned to authorize Chairman Hayn to write a letter, seconded by R. Esteve. All members present voted in favor. MOTION CARRIED.
Cathy Pompei:
Fire Department: Met with the fire chief. There is a potential problem with the well at station 2. There is a possibility of re-drilling needing to take place. The cost of this is a concern.
John Ringo:
Youth Services:
• Ran out of oil today. This is the second time it happened with the vendor.
• New officers were voted in for the upcoming year.
Rob Esteve
BOE:
• The finance committee met.
• Karen recommended a BOE budget freeze.
• There are five areas of the budget that are either over budget already or close to being over budget.
• School did not meet their AYP. The impact could be an effect on future grants. The school is looking to find alternative ways to fund the para-professionals that are paid for out of these grants.
• Budget development process has begun.
• There is a proposal by the state fot the town to pay the magnet school costs.
Gregg LePage:
Treasurer:
• Will start looking into an RFP for the banking. People’s Bank is looking into a couple possibilities with municipal bond yields.
• Nothing back on a reduction of service fees. Service fees will be part of the RFP.
9. OLD BUSINESS
9.1 Fiscal Year 2010-2011 Budget Workshop/Meeting schedule:
• The schedule currently is being looked at by department heads. Workshops will be starting in March.
• There will be a joint presentation to BOE, BOS, and BOF on January 21, 2009 by Milliman & Company (Town Actuarial Firm) to give an overview of the post retirement benefits and health insurance funds.
10. NEW BUSINESS:
10.1 Acceptance of Resignation of Brian Smith: Chairman Hayn read a resignation from Brian Smith.
J. Ringo to accept the resignation of Brian Smith with regrets, seconded by R. Esteve. All members present voted in favor. MOTION CARRIED.
11. ADJOURNMENT: J. Ringo motioned to adjourn, seconded by R. Esteve. All members present voted in favor. MOTION CARRIED.
Dawn LePage, Clerk
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