The Board of Finance held a regular meeting on Monday, February 14, 2005 in the meeting room at Town Hall South, Main Street, CT. Chairman John Kortze called the meeting to order at 7:40 pm.
PRESENT: John Kortze, James Gaston, Harrison Waterbury, Michael Portnoy, Peter Giarratano, Joseph Kearney
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg, Town Attorney David Grogins (8:05), Schools Superintendent Dr. Evan Pitkoff, Schools Business Manager Ron Bienkowski, Board of Education Chairman Elaine McClure, Legislative Council members Joseph Borst and James Shpunt, Open Space Task Force members Sally O’Neil and Patricia Barkman, one member of press
PUBLIC PARTICIPATION: None noted at this time
COMMUNICATIONS: Mr. Kortze thanked the Board of Education for providing copies of transfers for Board of Finance members.
ACCEPTANCE OF MINUTES: Mr. Portnoy moved to accept minutes of the 1/27/05 meeting. Mr. Gaston offered amendment to page 1, under “Acceptance of Minutes”, instead of “apologized”, it should read that Mr. Gaston “acknowledged the intended cooperation of”. Minutes unanimously accepted as amended.
FINANCE DIRECTOR: Mr. Spragg reported that he read an article in the newspaper about a Board of Education meeting where Mr. Bill Sheluck made the following comment about rising insurance rates – “while you say you are careful not to point fingers, the fingers need to be pointed,” said Mr. Sheluck, “and they need to be pointed at the brokers!” In November, Mr. Spragg received a letter from the town’s broker, AON, disclosing their consulting compensation. Mr. Spragg feels that this clarifies the fact that the town is well covered regarding Mr. Sheluck’s concerns. State Attorney General Blumenthal has an ongoing investigation into brokers and agents. The Town has provided the Attorney General with a list of our brokers, agents and
carriers.
Mr. Spragg distributed copies of the Budget Summary and Anticipated Revenues and a recap of the Capital Reserve Fund.
FIRST SELECTMAN’S REPORT: First Selectman Rosenthal distributed copies of a newspaper article citing a report that national healthcare costs “eat up 24% of recent growth, far outpacing defense and education”. The rising costs for health insurance in the town’s budget is not just a local problem.
Special Appropriation – Remediation of Oil Spill at Reed Intermediate School
Schools Superintendent Dr. Evan Pitkoff distributed copies of the Board of Education Budget Summary Report for January 2005 indicating the status of accounts after the oil spill. He also distributed a report on invoices received to date in the amount of $691,288.07. At this point, expenses are estimated at $1.2 million. Mr. Kearney asked about using the Capital Reserve Fund to cover expenses rather than borrowing. Mr. Spragg advised that if the Capital Reserve Fund falls below the 5% level, the funds have to be replaced in a short amount of time and he does not see a revenue source to make that happen. Having the Fund fall below 5% could have a negative impact on our bond rating. Mr. Kearney stated that he would like to explore “borrowing” the money from the Capital
Reserve Fund.
Mr. Gaston moved to approve a special appropriation in the amount of $1 million for remediation of the oil spill at the Reed Intermediate School and to authorize the First Selectman and Finance Director to reimburse the Board of Education for expenses exceeding $216,000. Motion seconded and unanimously carried.
Cost Cap Insurance – Fairfield Hills Environmental Insurance Policy
Town Attorney David Grogins was present to explain a proposal for purchasing remediation cost cap insurance. This proposal was reviewed by our environmental consultant, Russell Bartley, and written copies of his opinion were distributed. First Selectman Rosenthal advised that he felt the decision to purchase or not purchase should be made in conjunction with the Board of Finance and Legislative Council.
Mr. Gaston moved to purchase remediation cost cap insurance in the amount represented as Option 3 in the letter from R. W. Bartley & Associates, dated 2/3/05. Motion seconded and carried: 5 YES – 1 NO (Portnoy)
Resolution Appropriating $2,000,000 for Land Purchase
Ms. Sally O’Neill and Dr. Patricia Barkman of the Open Space Task Force were present to discuss the Task Force rating of open space parcels. The Eichlers Cove marina property has the highest priority on their ratings list. The Task Force feels this purchase would be a great opportunity for the town.
Mr. Gaston moved to adopt the resolution entitled “Resolution Appropriating $2,000,000 For The Acquisition Of Land In The Town Of Newtown And Authorizing The Issuance Of $2,000,000 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, and to recommend to the Legislative Council for consideration and action. Upon roll call vote, the motion carried: 4 YES (Gaston, Kortze, Portnoy, Waterbury) – 2 NO (Kearney, Giarratano)
Resolution Appropriating $10,000 for Open Space
Mr. Gaston moved to adopt the resolution entitled “Resolution Appropriating $10,000,000 For The Acquisition Of Open Space Land In The Town Of Newtown And Authorizing The Issuance Of $10,000,000 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, and to recommend to the Legislative Council for consideration and action. Upon roll call vote, the motion carried: 5 YES (Kearney, Gaston, Kortze, Portnoy, Waterbury) – 1 NO (Giarratano)
Appropriation for Twenty-Seventh Payroll
Mr. Portnoy moved to increase 002-0110 Town Clerk Conveyance Tax in the amount of $327,430 and to increase Various Payroll Accounts in the amount of $302,430 and to increase 01-0012 Social Security in the amount of $25,000. Motion seconded and unanimously carried.
Having no further business, the meeting was adjourned at 10:40 p.m.
Jan Andras, Clerk
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