The Board of Finance held a regular meeting on Thursday, June 24, 2010 in the Council Chambers, 3 Primrose Street, Newtown, CT. John Kortze called the meeting to order at 7:40pm.
PRESENT: John Kortze, James Gaston, Martin Gersten and Michael Portnoy.
ABSENT: Joseph Kearney, Harry Waterbury.
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait, Superintendent of Schools Dr. Janet Robinson, Assistant Superintendent Linda Gejda, two members of the public and two members of the press.
VOTER COMMENTS: none.
COMMUNICATIONS: none.
MINUTES: Mr. Gersten moved to approve the minutes of June 14, 2010. Mr. Gaston seconded. All in favor.
FIRST SELECTMAN REPORT: First Selectman Llodra shared a draft project status summary report that would include all the CIP projects in the pipeline and each project individually (Att. A) and welcomed feedback as the process is refined. She also shared a Legislative Update (Att. B) saying the legislature extended the conveyance tax one more year. She spoke of senate bill 124 saying the Governors veto was overturned and senate bill 124 stands. The end result is the permit process for Housatonic Railroad to expand Newtown Transload has been halted. First Selectman Llodra said that there were two areas in the CIP recommendations the Board of Selectmen could support: reporting out protocol that makes information available in a comprehensive fashion. However, the Board of
Selectmen does not agree it should be regulatory, but procedural. The Board of Selectmen also agree that projects should be bonded separately. Mr. Tait said it doesn't cost more money to separate projects. He thinks it's a good policy if the public wants to view the projects individually. Smaller projects may be combined. First Selectman Llodra reported that the Board of Selectmen concurred with the Board of Finance on the other items. Mr. Tait believes the CIP should be looked at ever years saying that each year the process is being improved upon and getting more streamlined. Every year there is more information for each project. First Selectman reported that the First Selectman of Monroe, Steve Vavrek asked for a meeting with the First Selectman, Mr. Tait and Mr. Kortze to discuss Newtown’s CIP process. Monroe does not have a CIP practice and shopped around with the bonding agency looking for advice as to who they should
talk to; the bonding agencies identified Newtown as a model of best practice. The group shared the documents and the importance of having, and being guided by, policy.
FINANCE DIRECTOR REPORT: Mr. Tait provided a draft Town of Newtown Investment Policy (Att. C). The auditors recommended an operating fund investment policy. This policy will need to be adopted at a future meeting.
ADD TO AGENDA: Mr. Gersten moved to add a transfer from payroll to overtime to the agenda. Mr. Gaston seconded. All in favor.
UNFINISHED BUSINESS:
Discussion and possible action:
1. Board of Education Monthly Financial Report, March 31, 2010: (Att. D). Mr. Portnoy questioned what was budgeted for 2010-2011 for unemployment; Dr. Robinson didn't know the number off the top of her head. Mr. Portnoy pointed out that $142,000 is left in this year’s budget. Dr. Robinson said we were fortunate that the Western Connecticut Superintendants had an agreement to hire each others people. Dr. Robinson said that the unemployment budget was decreased considerably for next year. Mr. Kortze asked Dr. Robinson how many teachers are expected to fill vacant spots. Dr. Robinson said of eleven spots, five or six people that would've been let go will fill the spots.
2. Town of Newtown Year-To-Date Budget Report, May 4, 2010: (Att. E)
3. Resolution for joint meeting: Mr. Kortze submitted an email from Mr. Kearney (Att. F) regarding the Middle School Roof replacement project. Mr. Gersten questioned if there will be a delay on the roof project as per recent Board of Education minutes. Dr. Robinson said there are concerns the roof project will not be able to be started until next June and the costs involved. Dr. Robinson said that they have filed for reimbursement. A request for a joint meeting will be sent to the Council.
NEW BUSINESS:
Discussion and possible action:
1. Consolidation of Town and Education Account Functions: Mr. Kortze submitted an email from Mr. Waterbury (At. G) endorsing the financial positions with the town and the school system. Mr. Kortze said that there is a tremendous benefit to being on one system. This would improve transparency and make obtaining information easier. Mr. Gaston moved that the First Selectman and the Superintendent of Schools meet and consult in an effort to consolidate the town and education accounting functions. Mr. Gersten seconded. All in favor. Mr. Gaston explained that the Legislative Council Ad Hoc Committee on Maintenance spent a lot of time on economizing and collaboration in respect to departments. It was learned that there were two accounting systems, one for the town and
one for education, and no universal accounting method. First Selectman Llodra stated we are very passionate about a central purchasing agent. Mr. Tait confirmed having the town and the education on a unified system would take a while as it is complicated. First Selectman Llodra said that it would make good sense to solicit outside view, possibly developing an RFQ for educated and expert recommendations. Mr. Kortze said we all need to be on the same page with access to the same information. He said the Board of Finance is mandated by charter to have a supervisory role of the books and need to play a role in this process, whatever form it takes. Mr. Tait is also the Treasurer for the Town.
2. Transfers: Mr. Gaston moved to transfer $8,500 from 01310-1005 Police Overtime to 01340-1001 Salaries. Mr. Gersten seconded. All in favor. Mr. Gersten moved to transfer $3,500 from 01515-4025 Contractual Services to 01515-1003 Overtime. Mr. Gaston seconded. All in favor. Mr. Gaston moved to transfer $80,000 from 01570-2000 Contingency to $73,000 01500-4064 Contractual Overlays and $7,000 to 01500-5081 Capital Road Improvements. Mr. Gersten seconded. First Selectman Llodra explained the $73,000 was to pave Meadowbrook Road and a portion of Hattertown Road; the $7,000 was for engineering work on Cold Spring Bridge. All in favor. Mr. Gaston moved to transfer $4,000 from 01500-1003 Payroll to 01500-1004 Overtime. Mr.
Gersten seconded. All in favor.
3. Resolution: Mr. Kortze said there are mechanisms for the Board of Education to carry money over at year end. Mr. Kortze suggested allowing the money left over to be swept into the end of the year and put into the towns non-recurring account to be taken out by a special appropriation. The money could be earmarked for a particular purpose for the Board of Education. It would establish a precedent for which the Board of Education could have a pool of money for a capital non-recurring project in the future. Mr. Gaston moved to recommend to the Legislative Council the resolution stating the Board of Education year end surplus be transferred to the capital non-recurring fund to be used for future Board of Education capital expenditures, in essence there will be a line item in the
capital non-recurring fund called Board of Education Capital. Mr. Gersten seconded. Mr. Tait explained there is one capital non-recurring fund. Parks & Recreation surcharge has been separated into a P&R non-recurring used only for P&R. Land Use in lieu of fees was separated into a fund used only for Land Use in lieu of fees. During the budget process we appropriate transfers to be used for future capital items that can be spent as pay as you go instead of bonded. There is the ability within the fund to create separate line items. Mr. Portnoy asked how we are authorized to put funds into the capital non-recurring fund and specifically designate it for the Board of Education when money left over generally sweeps into the general fund. Mr. Kortze said the money can go into the non-recurring account as part of the normal process, it just happens to be money that is sweeping in. Mr. Tait said that the funds can be
designated to the Board of Education and put through the process all the way to the Council. The money can be earmarked for the Board of Education. Mr. Portnoy is concerned that even though there is a line labeled Board of Education capital, the money can be used for something else. Mr. Gaston amended his motion to recommend to the Legislative Council the resolution stating the Board of Education year end surplus be transferred to the capital non-recurring fund for the intended use for future Board of Education capital expenditures. Mr. Gersten seconded. All in favor. Mr. Gaston stated he thinks this is a good planning tool.
ANNOUNCEMENTS: none.
ADJOURNMENT:
Having no further business, the Board of Finance adjourned their regular meeting at 8:37p.m.
_______________________________
Susan Marcinek, Clerk
Att. A: Town of Newtown Project Status Summary Report (draft)
Att. B: Legislative Update, June 22, 2010
Att. C: Town of Newtown Investment Policy (draft)
Att. D: Newtown Board of Education Monthly Financial Report, May 31, 2010
Att. E: Town of Newtown Year to Date Budget Report, June 3, 2010
Att. F: J. Kearney email, June 23, 2010
Att. G: H. Waterbury email, June 23, 2010
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