TOWN OF GRANBY
BOARD OF FINANCE MEETING
MINUTES OF JUNE 22, 2009
PRESENT: Michael Guarco, Chairman; Francis Brady, B. Scott Kuhnly, Frederick Moffa, OD; and Al Wilke
OTHER ATTENDEES: Barbarajean Scibelli, Administration Finance Officer; Alan Addley, Superintendent of Schools; and Harry Traver, BOE Business Manager
Board of Finance Chairman Guarco confirmed that a quorum was present and called the meeting to order at 7:30 p.m.
MINUTES
The Board reviewed the meeting minutes of May 19, 2009.
ON A MOTION by B. Scott Kuhnly, seconded by Al Wilke, the Board voted unanimously (5-0-0) to approve the meeting minutes of May 19, 2009.
STATEMENTS OF ACCOUNTS
Mr. Traver reported on the May Board of Education Statement of Accounts. He forecasted approximately $213,000 will be returned to the General Fund. The money being returned to the General Fund may be higher than the forecast, depending on how the next few weeks unfold for end of year reporting. Mr. Traver indicated the return of money is the result of efficiencies in electricity usage and fuel purchases and cut backs in travel expenses.
Mr. Traver informed the Board that there is approximately $185,000 in reserve for satisfying the civil rights compliance review report and approximately $50,000 would be expended soon to address the highest priority issues from the civil rights compliance review report. A discussion was held about handling the appropriation or transfer of the money. It was recommended that a transfer be made. The Board of Education should make a formal request to transfer funds from the school to the Capital Equipment/Improvement Fund. The request should be forwarded to the Board of Selectmen for comment. The Board of Selectmen will then forward it to the Board of Finance for action to be taken. Mr. Traver indicated a former state building inspector reviewed school building plans and has given opinions of the issues that
need to be addressed.
Mr. Traver updated the Board on the status of the American Recovery Resource Act stimulus program. The amount involved is approximately $427,000 that can be expended in the next two fiscal years. Mr. Traver answered several of the Board’s questions, including:
- The plan submission date is July 1, 2009.
- The school expects to expend the money 50/50 in the two years.
- There are many rules and regulations still to understand and comply with.
- This money would add programs to the school system, assist Special Education programs and the transportation associated with special education, technology equipment and software purchases, and hiring a professional pre-kindergarten psychologist for a two-year contract.
- Steps adjusting the budget in the amount of $150,000 need to be considered if and when this amount is received. The $150,000 was made part of the budget before the state approved the stimulus program and awarded amounts to individual Board of Education budgets.
Barbarajean Scibelli reported on the Budget Operations for May 2009. She indicated that revenues are on target. The Education Cost Sharing account showed a shortage and she is waiting for information from BOE Business Manager regarding the reason. On the local revenue side, some accounts are in excess and some are lower than expected, such as Building Permits. Mrs. Scibelli indicated the excess revenue amounts would cover the shortages. Expenditures are on target.
CONSIDERATION OF FISCAL YEAR 2009 TRANSFER OF ACCOUNTS
Mrs. Scibelli noted there are no transfers needed in expenditure areas for this fiscal year. There was an expectation that several Public Works accounts would need transfers. As it turns out, all accounts were intact.
The Board reviewed the Preliminary Surplus and Fund Balance Analysis. Responding to Chairman Guarco’s inquiry about the estimated Board of Education expenditure return amount, Mrs. Scibelli indicated the figure ($200,000) was considered a safe number for estimating the year-end fund balance. Chairman Guarco asked that a revised Preliminary Surplus and Fund Balance Analysis be completed at the end of July.
Chairman Guarco acknowledged and congratulated Mrs. Scibelli in receiving an award entitled “National Certificate of Achievement for Excellence in Financial Reporting” for the town’s audit. The other Board members concurred and congratulated her individually.
Approximately $100,000 is expected to be returned to the General Fund from the town for the FY 2009 budget.
DISCUSSION OF TOWN BUDGET REFERENDUMS AND OTHER ITEMS
Chairman Guarco commented that this subject matter had several attachments which were requested by them from last month’s meeting. They included: recap of the budget referendum votes, the number of foreclosures occurring in Granby are six since January 2009, the actual auto supplement billed was $273,617.71, the timeline of finance software is expected to be in full service by January 2010, Other Post-Employment Benefits (OPEB) budget impact, Board of Selectmen budget reductions, and mill rate calculation formula. The OPEB budget impact of $158,000 will hopefully be assisted by the Health Benefits Fund. The OPEB amount can change every two years depending on the actuarial report. It was mentioned that the Board of Education budget reductions information was E-mailed to the Finance Board members.
Chairman Guarco requested his Board to express their opinions about the budget for FY 2011. Mr. Brady stated that he thought the economy is recovering, however, most residents probably will not notice the recovery themselves for one or two more years. His perspective was that the budget increase may be around 1% or lower. He commented the town has little to draw down from the General Fund for assists in the budget. Dr. Moffa agreed and commented that the 1% increase may be hard to handle. Mr. Kuhnly indicated he was optimistic for the rest of the year, but it is too early to see what we’ll do for next year. Mr. Wilke commented on a job well-done by the Board of Selectmen and Board of Education, especially with the good return of money to the General Fund by both boards. He too felt it is too
early to comment on how to manage the budget for next year. Mr. Wilke spoke about the teacher contract negotiations. He hopes similar results are achieved like the two town union contracts that happened this fiscal year. Chairman Guarco’s comments were: The Board already touched on many subjects that needed to be said. The town in its union negotiations did a good job this year. The Board of Education still needs to work out their union contracts for the upcoming fiscal year. The public’s perception won’t see the recovery as quickly as businesses. The public expectations are to hold the line in as many ways as we can. He is concerned with tax increases on property, not the overall budget. Fiscal Year 2011 becomes the tricky one. Stimulus money from the federal government, which is reportedly being sent to the Board of Education directly, should be transferred to the town when received.
ADJOURNMENT
The next regular meeting is scheduled for July 27, 2009 at 7:30 p.m. in the Police Department Community Room.
ON A MOTION by B. Scott Kuhnly, seconded by Al Wilke, the Board voted unanimously (5-0-0) to adjourn the meeting at 8:30 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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