BOARD OF SELECTMEN
BOARD OF FINANCE
JOINT MEETING JANUARY 16, 2007
MINUTES
The Board of Selectmen and the Board of Finance called the joint meeting to order on Tuesday, January 16, 2007 at 7:15 p.m. at the East Windsor Town Hall, 11 Rye Street, Broad Brook.
ATTENDANCE:
BOARD OF SELECTMEN
Linda Roberts, First Selectman
Kenneth Crouch, Deputy First Selectman
Thomas Sinsigallo, Selectman
Gil Hayes, Selectman
Edward Filipone, Selectman
BOARD OF FINANCE
Paul Catino, Chairman
Mary Szabo, Treasurer
Noreen Farmer
Jack Mannette
Marie DeSousa
William Dove
Dale Nelson
1. To present and discuss the Capital Improvement Plan for FYE 2008.
Terry Larson of Webster Bank came before the Boards to discuss this year’s Capital Improvement Plan, and the Committee’s proposal to Bond three large items. Ms. Larson provided both Boards with figures on financing these projects for five years and the effect on the mill rate. Ms. Larson stated it is not uncommon for Towns to do bonding on short term for equipment needs. It is a growing trend. She also discussed East Windsor’s history of debt service. Ms. Larson pointed out that there are two lines in the budget for the sum of all capital projects – debt service and CIP. Any debt service issued will be by May 1, but they will watch the market for a good time. In the Resolution the figures include the total cost of $25,000 to issue the debt, which is worked
into the numbers, divided three ways. The Committee prepared a very detailed proposal outlining all their work this year, the requests, the intent of the Capital Improvement plan and the Capital Improvement Plan for FYE 2008. A copy of that proposal is attached hereto as Attachment A as it provides specifics on the background and philosophy, the requests for this past year, the Bonding/Leasing concept, a bonded debt summary and the Conclusion and recommendation. In sum the Committee felt the Proposal meets the infrastructure needs of the Town, providing an appropriate mill rate and providing the best for the needs of the public. The Town needs to start dedicating money back to the infrastructure.
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BOS MOTION: To recommend to the Board of Finance the Capital Improvement Plan for FYE 2008, as presented, also do debt service in the amount of $1,320,000.
Made by Mr. Filipone, seconded by Mr. Hayes
ALL MEMBERS IN FAVOR. MOTION CARRIED.
BOS MOTION: To adopt a Resolution appropriating $1,320,000 for various public improvements and authorizing the issuance of $1,320,000 bonds of the Town to meet said appropriation and pending the issuance thereof the making of temporary borrowings for such purpose. (Also see attached Resolution Page)
Made by Mr. Sinsigallo, seconded by Mr. Hayes.
ALL MEMBERS IN FAVOR. MOTION CARRIED.
*It was noted that Ms. Larson is retiring on June 30. She has been a part of the Town’s CIP for twenty years. On behalf of everyone, Ms. Roberts thank Ms. Larson for her years of dedicated service.
2. To discuss and respond to the auditor’s recommendations for FYE 2006.
Mr. Catino and Ms. Roberts both indicated that the auditor comments were more housekeeping measures and there are no areas of concern. Ms. Szabo, Town Treasurer, addressed the auditor recommendations and how the Town will respond.
* Tax Assessor’s Office Procedures. Ms. Szabo referred to the Assessor’s memo dated January 16, 2007, which outlined that there was a rapid building period and it took time to catch up to the Certificate of Occupancies to process. This issue has taken care of itself as the rapid building period has come to a close. The second issue regarding reconciliation has also been taken care of the kinks in a new computer system have been worked out.
*Board of Education Accounts. Ms. Szabo did not hear back from the Board of Education regarding this issue. It pertains to small accounts that have little money and need to be closed. Ms. Szabo will draft a memo to the BOE, for review by the Board of Finance, asking that they comply with the auditor recommendations and kindly close any unused accounts.
*Sewer Assessment Receivable. There was a problem with the computer program and Quality Data is currently working that out. The Tax Collector was able to manually reconcile this account properly.
*Town’s Retirement System. The Board of Finance is aware of this situation and is carefully considering the recommendations and making continued efforts to fund the unfunded liability in the forthcoming 2008 budget. On the 20th of this month the latest actuarial data will be available.
*Infrastructure reporting. The firm hired has completed a majority of the evaluation. A meeting needs to take place with WPCA and Public works to work towards finalizing this.
*Post employment benefits. A budget item will be for a study for this. An RFP will be put out for an actuarial firm to evaluate the Town side and the Board of Education side. The Town has until fiscal year 2009 to be compliant with final figures.
*Deposit and Investment Risk Management. Ms. Szabo has asked the auditor for forms and documents to look at to see what needs to be done. In the future Ms. Szabo will present the Board of Selectmen and Finance with proposed policies that can be implemented. There are no limitations or dates as to when this compliance is needed.
Ms. Roberts indicated the next step with these Auditor Recommendations is to send the Town’s response to the State (OPM), so they are aware of what the Town did to comply. Also the responses to the recommendations are published in the town report.
3. To establish guide lines for the budget for FYE 2008.
Extensive discussion by both boards took place on the message the Boards want to send in the guidelines for the budget, what the feel for the taxpayers’ tolerance will be with budget increases, as well as the effect increases in items such as utilities, fuel and insurance have on the budget process. A similar concern, as in years past, was expressed about pulling together a budget the taxpayers will stand behind and not vote down. Mr. Catino indicated when drafting the memo “don’t write it if you don’t mean it.” In other words if the memo states no requests will be accepted for new programs and positions – no matter what the rationale - none of those items should be accepted. At this point frank discussion ensued about who will be requesting such items based on a
proven need.
It is too soon for Grand List numbers to be projected and it is not expected there will be an overflow of State funding. It was also stated that even if the Grand List increases, it does not present a license for increased budget requests. Often times the Grand List increase offsets utility, capital and insurance costs. Mr. Catino reiterated the past two years the budget passed with .8 mill increase. Are the taxpayers interested in a tax increase and who will advocate or petition and lobby the taxpayers so they understand the need for increase?
The idea of status quo budgets and percentage increased was discussed at length. After this discussion the members of both boards were polled as to what the language should state in the memo. It was a split consensus as to the wording of the memo, but the general feel, and what Mr. Catino will draft for the budget memo to be distributed, will include language that any new programs or positions will be scrutinized by the finance board. In sum, “the door was cracked open” to accept and scrutinize the possibility of new positions or programs.
4. To set a meeting schedule for the budget process.
The Board of Finance will set the schedule at their meeting and advise the Board of Selectmen as to the schedule.
5. Review of Operating Budget FYE 2007
Ms. Roberts informed everyone of the problem areas of concern regarding the current budget. Specifically the legal budget at midyear is at 65% and it is anticipated will be over $50,000/$60,000 by year end; a sewer user fee of $3696 had to be paid as part of Park Hill contract; and Town Property will be $30,000/$40,000 over due to increases in electrical cost. On the plus side the lack of snowfall this year is a bonus, but it does not likely present a savings as the electrical increase will be taken from salt and sand monies saved. Also there is a $60,000 street light rebate expected. Discussion will need to take place on where this money needs to be put or how it can possibly be used to offset some of the above referenced cost overages.
6. EXECUTIVE SESSION (*This item was addressed out of order)
A. In accordance with Connecticut General Statute Section 1-200 (6) (a)
Contract Negotiations
MOTION: To enter into Executive session at 8:15 p.m. in accordance with Connecticut General Statue Section 1-200(6)(a) Contract Negotiations to including the members of the Board of Selectmen, the members of the Board of Finance and the Town Attorney
Made by Mr. Crouch, seconded by Mr. Hayes
ALL MEMBERS IN FAVOR. MOTION CARRIED.
MOTION: To come out of Executive Session at 9:20 p.m.
Made by Mr. Hayes, seconded by Mr. Sinsigallo
ALL MEMBERS IN FAVOR. MOTION CARRIED.
No action taken as a result of the Executive Session.
ADJOURNMENT
MOTION: To adjourn the Joint Meeting of the Board of Selectmen and the Board of Finance at 10:02 p.m.
Made by Ms. Nelson, seconded by Ms. Farmer
ALL MEMBERS IN FAVOR. MOTION CARRIED.
Respectfully submitted,
Cynthia D. Croxford
Attached – Resolution (1 page)
Attachment A – CIP Proposal (23 pages)
ATTACHMENT – Resolution
A meeting of the Board of Selectmen of the Town of East Windsor was held in the East Windsor Town Hall, 11 Rye Street, Broad Brook, CT on Tuesday, January 16, 2007 at 7:00 p.m.
Members present and absent were as follows:
Present: Absent: None
Linda Roberts, First Selectman
Kenneth Crouch, Deputy First Selectman
Thomas Sinsigallo, Selectman
Gil Hayes, Selectman
Edward Filipone, Selectman
Mrs. Roberts introduced and read the following resolution:
RESOLVED: That the resolution entitled “Resolution Appropriating $1,320,000 For Various Public Improvements and Authorizing The Issuance of $1,320,000 Bonds Of The Town To Meet Said Appropriation And Pending the Issuance Thereof The Making Of Temporary Borrowings For Such Purpose”, a copy of which is attached hereto, be approved and recommended for adoption by the legal voters of the Town at Town Meeting.
Mr. Sinsigallo moved that the said resolution be adopted as introduced and read and the motion was seconded by Mr. Hayes. Upon roll call vote the ayes and nays were as follows:
AYES NAYS
Linda Roberts, First Selectman None
Kenneth Crouch, Deputy First Selectman
Thomas Sinsigallo, Selectman
Gil Hayes, Selectman
Edward Filipone, Selectman
Mrs. Roberts thereupon declared the motion carried and the resolution adopted.
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