The Board of Finance held a regular meeting on Monday, June 8, 2009 in the meeting room at Town Hall South, 3 Main Street, Newtown, CT. Chairman John Kortze called the meeting to order at 7:30 p.m.
PRESENT: John Kortze, James Gaston, Michael Portnoy, Martin Gersten and Harry Waterbury.
ALSO PRESENT: Finance Director Robert Tait and one member of the public.
VOTER PARTICIPATION: none
COMMUNICATIONS: Mr. Kortze reported that there is going to be an environmental study and an appraisal done on the property at 27 Church Hill Road.
The Board of Education is still working on the itemization of the reductions made to the budget.
ACCEPTANCE OF MINTUES: Upon motion by Mr. Gersten the minutes of the meeting of May 28, 2009 were unanimously approved.
FIRST SELECTMAN REPORT: none.
FINANCE DIRECTOR REPORT: Mr. Tait reported the year end closing process has begun. Departments have been told that re-appropriations wouldn’t be looked at favorably this year.
NEW BUSINESS:
Discussion and possible action:
Transfers: Mr. Gaston moved the transfer from Contingency, 01570-2000 in the amount of $16,819.74 to Referendum, 01180-1005 in the amount of $10,012.98 and to Election Workers 01180-1007 in the amount of $6,806.76. Mr. Gaston seconded. All in favor.
Mr. Gaston moved the transfer from Contingency, 01570-2000 in the amount of $450.00 to
N.W. Safety, 01426-000. Mr. Waterbury seconded. All in favor.
Mr. Waterbury moved the transfer from Contingency, 01570-2000 in the amount of $25,000 to
Unemployment, 01240-2001. Seconded by Mr. Gaston. All in favor.
Mr. Tait reported there will be $65,000 left in Contingency after the above transfers.
Resolution: Mr. Gaston moved to waive the reading of the Resolution with respect to the authorization, issuance and sale of not exceeding $20,000,000 Town of Newtown general obligation refunding bonds. Mr. Gersten seconded. All in favor.
Mr. Tait explained he wanted the approval to refund should the opportunity come up. The resolution expires on June 30, 2010.
Mr. Gaston moved the Resolution with respect to the authorization, issuance and sale of not exceeding $20,000,000 Town of Newtown general obligation refunding bonds. (Att. B). Mr. Gersten seconded. All in favor.
UNFINISHED BUSINESS:
Discussion and possible action:
Pension: Mr. Gaston moved to authorize Mr. Kortze to draft a cover letter from the Board of Finance to the Board of Selectmen requesting answers to the list of questions on the pension.
(Att. B). Mr. Gersten seconded. All in favor.
ANNOUNCEMENTS: Mr. Gersten questioned the street sweeping procedure. Mr. Gaston reported that he attended the Legislative Council Facilities Subcommittee meeting and mentioned that there are a lot of interesting, shared jobs. It is difficult to quantify the costs. Work orders can be put through a system that will account for the time, who is doing the work and the location of the work. There will be a cost account of what is actually being done by town workers in both the town and at the Board of Education. Technology is where we may want to be investing our money.
Mr. Portnoy reported he will call Elaine McClure regarding the teacher negation Ad Hoc this week. Mr. Kortze recognized that there was a letter from Elaine McClure looking for a joint meeting between the Board of Education, the Council and the Board of Finance.
ADJOURNMENT: Having no further business, the meeting was adjourned at 8:00 p.m.
_____________________________
Susan Marcinek, Clerk
Att. A: $20,000,000 Refunding Resolution
Att. B: Pension questions
BOARD OF FINANCE PENSION QUESTIONS
1.) What is the total compensation of our advisors based on? i.e. percent of funds invested, fee plus, etc.
2.) What was the total compensation for the last three years by year?
3.) How does this compensation compare to pensions of like size?
4.) How do other towns select pension fund advisors? i.e. RFP, RFQ, other?
5.) What criteria/standard has been used to employ the pension administrator companies?
6.) What annual review process has been employed to review the success of the pension administrator companies, i.e. comparisons to whom or what?
7.) Does the Board of Selectmen implement such standards and /or review, the pension committee, or both?
8.) Are any conflict checks included for any town Board or Committee members (i.e. is the name of the coordinator publicized in any manner to Boards or Committee members to make sure there are no conflicts, etc.?)
9.) Your investment assumption is 8% annually, yet your actual annualized return over the last ten years is approximately 4.5%. How can you continue to use an 8% investment assumption based on your ten year record?
10.) What changes to your investment approach might increase your return?
11.) How often do you review your investment policy statement?
12.) Are your investment options too limited to reach your desired return?
13.) Have you considered hiring firms that specialize in various asset categories (equity, bonds, international) vs. Westport Resources that handles the entire fund?
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June 4, 2009
HART1-1547359-1
Items for Agenda of
Meeting of Legislative Council
1. To consider and act upon the resolution entitled “Resolution With Respect To The Authorization, Issuance And Sale Of Not Exceeding $20,000,000 Town Of Newtown General Obligation Refunding Bonds.”
Excerpt for Minutes of Meeting
of Legislative Council
to be held ___________, 2009
A meeting of the Legislative Council of the Town of Newtown was held in the ______________________________________________ on __________ __, 2009, at ___________ o’clock _.M. (E.D.T.).
* * *
Members present and absent were as follows:
Present Absent
(List Names)
* * *
Councilman _____________________ introduced and read the following resolution:
RESOLVED: That the resolution entitled “Resolution With Respect To The Authorization, Issuance And Sale Of Not Exceeding $20,000,000 Town Of Newtown General Obligation Refunding Bonds”, a copy of which is attached hereto, is hereby adopted.
Councilman ____________________ moved that said resolution be adopted as introduced and read and the motion was seconded by Mr. ____________________. Upon roll call vote the ayes and nays were as follows:
AYES NAYS
(List names)
Councilman ___________________ thereupon declared the motion carried and the resolution adopted.
* * *
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