TOWN OF COLCHESTER
BOARD OF FINANCE – REGULAR MEETING
TOWN HALL
127 NORWICH AVENUE
Wednesday, February 3, 2010 – 7:00 p.m.
MINUTES
Members Present: Chairman Bruce Hayn, Rob Tarlov, Cathy Pompei, John Ringo, Rob Esteve
Members Absent: None
Others Present: Rosemary Coyle, BOS; Gregg Schuster, First Selectman; Gregg LePage, Treasurer; Maggie Cosgrove, CFO; Mike Caplet, Mike Misiewicz, Ms. Vullo.
1. CALL TO ORDER: Chairman Hayn called the meeting to order at 7:00 p.m.
2. APPROVAL OF PREVIOUS MEETING MINUTES
2.1 January 20, 2010 Regular Meeting: J. Ringo motioned to accept the minutes of January 20, 2010, seconded by R. Tarlov. All members present voted in favor. MOTION CARRIED.
3. CITIZENS COMMENTS: Ms. Vullo, questioned if the Tax Collector’s office went over budget on legal fees this year. Chairman Hayn replied that legal fees are a general line item and not per department but he can say that the majority of the legal expenses come from Planning and Zoning issues. The legal cost of collection is absorbed by the tax payer. Ms. Vullo expressed discontent with the manner in which the Tax Collector handled her tax collection feeling the Tax Collector could work with the individual tax payer more. The Board is glad to see the improvement in collections but is not aware of the approach being used.
4. ADDITIONS TO THE AGENDA: J. Ringo motioned to move BOE Liaison to this point in the meeting, seconded by R. Tarlov. All members present voted in favor. MOTION CARRIED.
BOE Liaison – (Ron Goldstein): Superintendent has not put “recommended” on this years proposed budget. She does not feel it is a budget an educator can recommend. The proposed budget is showing a
4.75% increase. In the middle school there was a drop in enrollment allowing the elimination of a team but overall enrollment is up. Additional staff cuts were reviewed. Colchester is spending $1,500 less per pupil according to the DRG. We are 159 out of 166 on per pupil expenditure. Reasons for the increase in budget is the net gain of students, we are 77 more this year than projected, and are expecting a 17 student drop in 2010-11, still making it 60 more than budgeted this year. Chairman Hayn asked if there is a chance that this coming school year we could again see another 70 more than budgeted. R. Goldstein said yes, that is always a possibility. We have seen an increase in students while other districts have seen fewer students. Contractual obligations and no
stimulus funding this year allow for the majority of the increase. Mr. Goldstein explained that 1.3 million of the 1.6 is for the cost of increased enrollment and filling the gap from last year and not having the $630,000 stimulus money this year. J. Ringo said that in East Hampton they are offering an early retirement package for 10 teachers and questioned if this is something Colchester had looked into. R. Goldstein said it had been evaluated but at this time it did not appear cost effective due to the ages of our teachers. The Board of Education has, however, waived the requirement to give a one year notice of retirement to encourage any teacher debating about retirement in the fall. Superintendent Loiselle will be giving a full presentation to the Board of Finance on March 15, 2010.
Mr. Goldstein asked for approval of the under expenditure of $65,922 from the 2008-2009 budget year to be placed in to capital reserve to be used toward this years expenses.
Rob Esteve – The school district did not meet our AYP standards resulting in money having to be allocated for tutoring. Those students affected chose not to take advantage of the tutoring allowing for the money to be used toward salaries for paras.
R. Esteve motioned to approve an Appropriation from General Fund Designated Fund Balance to Transfers out to BOE Capital Reserve in the amount of $65,922 ( the unexpended balance of the BOE budget for the fiscal year ended 6/30/09 as reflected in the audited financial statements), seconded by J. Ringo. All members present voted in favor. MOTION CARRIED
5. BOARD VACANCY INTERVIEWS: Mike Caplet and Mike Misiewicz were interviewed.
6. EXECUTIVE SESSION TO DISCUSS BOARD VACANCY INTERVIEWS:
R. T. motioned to go into Executive Session, seconded by R. Esteve. All members present voted in favor. MOTION CARRIED.
The Board entered into Executive Session at 8:00 p.m.
R. Esteve motioned to come out of Executive Session, seconded by J. Ringo. All members present voted in favor. MOTION CARRIED.
The Board came out of Executive Session at 8:12 p.m.
7. POSSIBLE DECISION ON APPOINTING SOMEONE TO FILL THE BOARD VACANCY:
C. Pompei motioned to appoint Mike Caplet to the BOF, finishing out the term vacated by Brian Smith until the next municipal election, with a term to expire November 21, 2011, seconded by J. Ringo. All members present voted in favor. MOTION CARRIED.
First Selectman Schuster swore Mr. Caplet in at this time.
8. DEPARTMENT REPORTS
5.1 Finance Department: M. Cosgrove distributed Report to the Board of Finance dated January 29, 2010, Financial Report dated June 30, 2009, Federal and State Financial and Compliance Reports Fiscal Year Ended June 30, 2009, and Management Letter as prepared by McGladrey and Pullen Certified Public Accountants. The Board would like the Auditors to come to a meeting to review the reports.
5.2 Tax Collector: No report
9. FIRST SELECTMAN’S REPORT:
9.1 Selectman’s Agenda:
9.1.1 Transfer Requests
• Budget Transfer for Library: R. Tarlov motioned to approve the library transfers (attached), seconded by R. Esteve. All members present voted in favor. MOTION CARRIED.
• Transfer/Additional Appropriation for Heat & Equipment Repairs: J. Ringo motioned to approve the transfer for Heat & Equipment Repair (attached), seconded by C. Pompei. All members present voted in favor. MOTION CARRIED.
9.1.2 First Selectman’s Update:
• First Selectman Schuster reported that in the Governor’s proposed budget most municipalities were spared large budgetary cuts. Colchester would have an approximate $20,000 decrease
• Our Grand List had little growth this year.
• The department heads have submitted their budget requests and the total requested spending is an increase of 11.8% or about $1.6 million more than last year. A good portion of the increase is due to requests for road maintenance. He will be working with department heads to significantly reduce this number.
10. CORRESPONDENCE: None
11. LIAISON REPORT:
Rob Tarlov-
Sewer and Water: Proposed budget increase is 3% for water and 6% for sewer. Twelve RFQs were
received for the STEAP grant. The grant study is for the expansion of sewer and water down at the
business park
Cathy Pompei-
Fire Department: The Board received a capital improvement request list. She has asked the Fire Department to prioritize the list. Chairman Hayn asked for clarification if they have actually applied for a $45,000 grant to purchase a fire police vehicle. Physicals are required for Fire Department members. The cost is estimated at $260 per firefighter. R. Esteve, commented that members who can get them through insurance should be encouraged to do so but those who are not able to, the Company has to take on the responsibility.
Gregg LePage-
Treasurer’s Report:
The bank service fees invoice is being sent out by People’s bank in the amount of approximately $18,000. He spoke with David Weber of People’s Bank in regard to lowering the service fee. Mr. Weber informed him that the bank has not raised their fees in a number of years and most municipalities are having a similar issue. The much larger concern is that $240,000 was budgeted for interest. To date only $14,000 of interest has been earned. M. Cosgorve has her department working on making more electronic payments to save on service fees.
12. OLD BUSINESS: None
13. NEW BUSINESS:
• Post employment benefits were briefly discussed. M. Cosgrove said that it is strongly not recommended to bond for funding the post retirement benefits. First Selectman Schuster that he would like to wait until after the budget process is over in order to give the benefits issue more detailed assessment.
14. ADJOURNMENT: R. Esteve motioned to adjourn, seconded by J. Ringo. All members present voted in
favor. MOTION CARRIED. Chairman Hayn adjourned the meeting at 8:12 p.m.
Dawn LePage, Clerk
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