The Board of Finance held a regular meeting on Thursday, January 27, 2005 in the meeting room at Town Hall South, Main Street, CT. Chairman John Kortze called the meeting to order at 7:30 pm.
PRESENT: John Kortze, James Gaston, Harrison Waterbury, Michael Portnoy, Peter Giarratano, Joseph Kearney
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg, Schools Superintendent Dr. Evan Pitkoff (7:50), Schools Business Manager Ron Bienkowski, Board of Education Chairman Elaine McClure (7:55), Board of Education members Andrew Buzzi (8:00), David Nanavaty, Paul Mangiafico, Tom Gissen (7:50), three members of public, one member of press
PUBLIC PARTICIPATION: None noted at this time
COMMUNICATIONS: Members of the Board of Finance received an e-mail from Library Board of Trustees member Kelly Urso outlining the Library funds.
At a meeting on 12/21, the Board of Education voted to continue receiving financial reports on a quarterly basis. The Board of Finance had thought it would be helpful to receive a monthly accounting similar to what is received from the Town’s Finance Director.
ACCEPTANCE OF MINUTES: Mr. Kearney moved to approve the minutes of the 11/29/04 meeting. Mr. Portnoy advised that he was unable to attend the Council meeting on 12/1/04 as the Board of Finance representative and that Mr. Kortze attended that meeting. Mr. Gaston stated that he was unable to attend the meeting on 11/29. Regarding comments he had made at the previous meeting (10/28), he is now satisfied that Mr. Bienkowski is not “irresponsible or confrontational” and that Mr. Bienkowski had been willing to attend the Board of Finance meeting. Mr. Gaston now understands why the decision was made regarding busing and he apologized to Mr. Bienkowski. Minutes were unanimously approved.
FINANCE DIRECTOR: Mr. Spragg distributed the statement from the December bond issue, which is the most up-to-date document on the town’s finances.
NEW BUSINESS
Resolution of Official Intent to Reimburse Expenditures From the Proceeds of Tax-Exempt Obligations For The Reed Intermediate School Oil Spill Remediation and Related Clean Up
Mr. Gaston moved the following:
Whereas, the Town of Newtown (the “Town”) plans to remediate and take all necessary related action to clean up the oil spill at the Reed Intermediate School (the “Project”);
Whereas, the Town plans to finance the cost of the Project with the proceeds of tax-exempt bonds or other tax-exempt obligations authorized by a subsequent resolution (the “Bonds”); and
Whereas, the Town may incur preliminary expenditures for the Project prior to the issuance of the Bonds.
RESOLVED, that the Town hereby expresses its official intent pursuant to Section 1.150-2 of the Federal Income Tax Regulations, Title 26 (the “Regulations”), to reimburse expenditures paid sixty days prior to and anytime after the date of adoption of this Resolution from the net proceeds of the Bonds. The Bonds shall be issued to reimburse such expenditures not later than 18 months after the later of the date of the expenditure or the substantial completion of the Project, or such later date the Regulations may authorize. The Town hereby certifies that its intention to reimburse as expressed herein is based upon its reasonable expectations as of this date. This Resolution is adopted solely for purposes of compliance with the Regulations and
may not be used or relied on for any other purpose. Motion seconded.
Mr. Spragg advised that the oil spill clean-up may require borrowing. IRS regulations will only allow us to go back 60 days to pick up expenses for borrowing. Dr. Pitkoff advised that as of 1/21, there are $200,000 in bills received for the clean-up work. There is at least another $100,000 estimated, at which time, we would have enough knowledge to know what the total costs would be. Dr. Pitkoff reminded that the Board of Education does not have a contingency in their budget. There is no Statute to authorize the Board of Education to carry over funds from one year to the next.
MOTION CARRIED upon roll call vote: 6 YES (Kortze, Gaston, Portnoy, Waterbury, Kearney, Giarratano)
Board of Finance members again asked to receive monthly financial reports from the Board of Education. Mr. Kortze will draft a letter requesting these reports.
Resolution Appropriating $2,000,000 for the Acquisition of Land
Mr. Mark Nolan of Nolan Enterprises was present and gave a presentation on open space property located on Laurel Trail. Mr. Rosenthal advised that the Board of Selectmen has initiated an appropriation in the amount of $350,000 to buy this 17.60 acres of vacant land situated on the north side of Laurel Trail in the eastern section of town. Mr. Rosenthal sees this property as being used for passive recreation.
The Board of Selectmen has also initiated an appropriation for $1.425 million for the purchase of a 10.53 acre parcel of land with a 100 slip marina known as Eichlers Cove. This would allow the Town to have public access to Lake Zoar.
No action was taken at this time. Board of Finance members received copies of maps and pictures of the subject properties.
Transfer
Mr. Gaston moved to transfer FROM Account 01570-2000 Contingency $105,188 TO Account 01510-2031 Sand $36,750 AND TO Account 01510-2031 Sand $34,688 AND TO Account 01510-1003 Winter OT $33,750. Motion seconded and unanimously carried.
First Selectman Rosenthal advised that the Governor is attempting to get federal reimbursement for towns for costs for the last storm.
Having no further business, the meeting was adjourned at 10:15 p.m.
Jan Andras, Clerk
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