The Board of Finance held a regular meeting on Monday, May 8, 2006 in the meeting room at Town Hall South 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 pm.
PRESENT: John Kortze, Harrison Waterbury, Michael Portnoy, Joseph Kearney, John Torok ABSENT: James Gaston
ALSO PRESENT: First Selectman Herbert Rosenthal, Finance Director Ben Spragg, Board of Education members David Nanavaty and Andrew Buzzi, one member of press
VOTER PARTICIPATION: None noted
COMMUNICATIONS: All Board members received copies of the Town Budget Summary for May and 2006/2007 budget updates from Finance Director Spragg.
ACCEPTANCE OF MINUTES: Upon motion by Mr. Torok, the minutes of the 3/23/06 minutes were unanimously accepted as presented.
FINANCE DIRECTOR’S REPORT: Mr. Spragg distributed copies of a sample amortization schedule for General Obligation Bonds and explained how payments are made. Members will look these over and come back with questions at a future meeting.
FIRST SELECTMAN REPORT: First Selectman Rosenthal advised that the state budget has been passed. We did not get the energy assistance grant that we had anticipated in our budget for $284,000. However, the Board of Education could get an additional $200,000 in a Special Education Excess Cost increase.
UNFINISHED BUSINESS
Chairman John Kortze asked Board of Education members if they could supply the Board of Finance members with copies of the recent “internal controls report” on the schools accounts.
Hawley School HVAC
Chairman Kortze advised that he put this on the agenda for discussion in order to determine where this project stands right now. Mr. Buzzi advised that they received suggestions from the First Selectman and Financial Director as to how to change the RFP so that when bids come in, they can be better evaluated. He stated that any specific technical questions about the RFP be put in writing so that he can get answers. They want to get the best numbers possible for this project
Chairman Kortze stated that all members of this Board agree that there is a need for this project but they are concerned with the numbers being presented. He does not feel that “we are in a different spot today than when we first starting discussing this project”. We have a project that has gone up in cost but no demonstration as to the reason.
Mr. Buzzi reminded that the other most important project being discussed is the proposal for expansion of the high school and the Board of Education has not yet made a decision. It is justifiable to have concerns with that on the horizon. By the time we get a better number from the RFP for the Hawley project, we should also have a number for the high school so this can be put into prospective and decisions can be made.
After some further discussion, it was decided that the Board of Finance will supply amounts that could be available for bonding in each year without going over the debt limits.
TRANSFERS
Mr. Portnoy moved to transfer FROM Account 01570-2000 Contingency $20,000 TO Account 01100-4063 Legal Other $20,000. Motion seconded and unanimously carried. First Selectman Rosenthal advised that there was a shortfall in the legal account due to litigation, negotiation of Police Union contracts and the cost of the town joining the CT Coalition for Justice in Education Funding.
Mr. Portnoy moved to INCREASE Revenue Account 0020116 Police Private Duty by $50,000 and to transfer to Account 01315-1008 Police Private Duty $50,000. Motion seconded and unanimously carried.
Mr. Portnoy moved to transfer FROM Account 01570-2000 Contingency $15,000 to Account 01100-4063 Legal Other $20,000. Motion seconded and unanimously carried. First Selectman Rosenthal explained that this transfer will cover the cost of creating new General Code Books and making it available on the town website, which was approved by the Legislative Council.
Mr. Kearney moved to transfer FROM Account 01570-2000 $7,200 TO Account 01180-1005 Referenda $7,200. Motion seconded and unanimously carried. This transfer is to cover the second budget referendum.
Resolution – Finance Director
Mr. Kearney moved to authorize the Financial Director to make any nominal transfers that may be required to end the fiscal year 2005/2006. Motion seconded and unanimously carried.
Having no further business, the meeting was adjourned at 9:00 pm.
Jan Andras, Clerk
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