The Board of Finance held a regular meeting on Monday, July 12, 2010 in the Council Chambers, 3 Primrose Street, Newtown, CT. John Kortze called the meeting to order at 7:30pm.
PRESENT: John Kortze, James Gaston, Martin Gersten, Joseph Kearney and Harry Waterbury.
ABSENT: Michael Portnoy.
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait, two members of the public and two members of the press.
VOTER COMMENTS: none.
COMMUNICATIONS: Mr. Kortze submitted a letter from Representative Chris Lyddy regarding the possibility of establishing a contingency fund for the Board of Education (Att. A). Mr. Tait said the wording in the letter isn’t very specific or clear. As a town, we’ve always had the ability to appropriate monies and transfer to a non-recurring fund for specific purposes. Mr. Gersten said it is a way of sidetracking the funds. Mr. Gaston said what was created at a previous meeting was specific to capital projects. This letter would allow an overage to be put into an account and accessed without the request of the town or without a specific capital project in mind. The benefit to the proposal made at the previous meeting is that projects are identified and there is planning. First Selectman Llodra asked who decides which money gets swept into surplus, how much goes into contingency and who will write the protocol. Mr. Gersten said it looks like the Board of Education sweeping fund.
Mr. Gaston said that this is an enabling statute. It was noted that the Legislative Council is not mentioned in the letter. Mr. Kearney said the decision to establish a fund is a Board of Finance decision and assumes the decision to dissolve such a fund will also be a Board of Finance decision. Mr. Tait said that encumbrances are commitments with a vendor; there should not be encumbrances on the system without a commitment. Money went into a non-recurring account this year because there was a sizeable amount returned. Mr. Kortze spoke of a University of Connecticut’s Institute of Public Service publication Handbook for Connecticut Boards of Finance.
MINUTES: Mr. Gersten moved to approve the minutes of June 24, 2010. Mr. Kearney seconded. All in favor.
FIRST SELECTMAN REPORT: First Selectman Llodra stated the fees collected for the department are up again, four months in a row. A page from the Revenue Budget Summary (Att. B) was presented. A meeting was held with United Water about the Sandy Hook water main project. An RFP for engineer services will be going out with an effective return date of July 26. Today marks the first day of the landfill being closed on Mondays. We received three phone calls from people who were very upset. It had been posted in the Bee, on Patch, on the website and there were signs at the landfill. Mr. Kortze questioned the Board of Education amended agenda asking if there has been a meeting on the combined services yet. First Selectman Llodra noted there is a meeting scheduled
for July 22 to assess how to go forward on the initiative. Mr. Kortze noted it was important to communicate this needs to be evaluated and discussed. First Selectman Llodra noted this is an obligation we have to examine practices to see if there is a more effective or efficient way to deliver services.
FINANCE DIRECTOR REPORT: Mr. Tait handed out a Moody’s rating sheet on New Milford (Att. C), who has the same Aa1 rating as Newtown. Considered were the financial position, healthy fund balance, debt service and scheduled tax base. Mr. Tait stressed that they are always looking at these.
UNFINISHED BUSINESS: none.
NEW BUSINESS:
Discussion and possible action:
1. Town of Newtown - Investment Policy: Mr. Gaston moved to adopt the Town of Newtown Investment Policy (Att. D) to include language stating that in the event of any conflict or inconsistency between the provision of this policy and the laws of the State of Connecticut the provisions of the law of the State of Connecticut shall be paramount and prevail and to recommend the Legislative Council adopt it as a town. Mr. Gaston seconded. All in favor.
2. Town of Newtown Project Status Summary Report & Capital Project Status Report: Mr. Gersten is concerned about change orders and the percentage of work completed versus expenditures. Mr. Tait said he could attach reports to the summary. Mr. Gersten moved to adopt the Project Status Summary Report as a practice and recommend to the Legislative Council that the town as a whole adopts this practice and allow the town finance director to make clerical adjustments. Mr. Kearney seconded. All in favor. (Att. E)
3. Recommended to Council: Bureau of Schools Memorandum of Understanding: (Att. F) This item tabled pending a formal letter from the First Selectman.
4. Suggested Capital Improvement Amendments: The CIP amendments were unanimously endorsed at a previous meeting. The Board of Finance feels strongly that the CIP regulation does not mean the amended. There are procedures that could be implemented but it is not a regulatory change. (Att. G). Mr. Kortze stated the Board of Finance has to be careful about the role they perform and how the roles overlap. Much of the suggested amendments are in the Charter or the regulations. The bid process takes place after the CIP and before the special appropriation. Mr. Gersten suggested enforcing the bidding issue before the project comes to the board. Mr. Kearney said there needs to be a way to get to the bid process in advance of the CIP. Mr. Kortze said the procedures and
regulations need to be looked into.
ANNOUNCEMENTS: Mr. Kortze asked about the time line of the middle school roof. First Selectman Llodra said that it would cost $20,000 to do interim repairs on the Middle School roof. Mr. Faiella possibly has other approaches for staging the work that would allow some of it to go forward in a more timely fashion. If that is not the case, there will be a considerable delay. The timing discussion will take place at the next Public Building and Site Commission meeting. Mr. Kortze said he will write a letter to the Board of Education.
Mr. Kortze asked Mr. Tait to find out what a 3% increase to Board of Education non-union employees equates to in total and would like to understand if the Board of Education can pass on the formal, public discussion of increases, not vote and give the discretion to the Superintendent. The district has policies and procedures in place that have to go to the board for approval. Mr. Tait has requested a schedule regarding the non union employees.
ADJOURNMENT:
Having no further business, the Board of Finance adjourned their regular meeting at 8:27p.m.
_______________________________
Susan Marcinek, Clerk
Att. A: Representative Chris Lyddy letter
Att. B: Revenue Budget Summary
Att. C: Moody’s rating of New Milford
Att. D: Town of Newtown Investment Policy
Att. E: Project Status Summary Report
Att. F: Bureau of School Facilities email
Att. G: B. Spragg & P. Llodra emails
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