The Board of Finance held a special meeting on Thursday, October 14, 2010 at Town Hall South,
3 Main Street, Newtown, CT. John Kortze called the meeting to order at 7:30pm.
PRESENT: John Kortze, James Gaston, Joseph Kearney and Harry Waterbury and Michael Portnoy.
ABSENT: Martin Gersten
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait, four members of the public and two members of the press.
VOTER COMMENTS: none.
COMMUNICATIONS: Mr. Kortze attended a finance subcommittee meeting of the council last week in regards to an outstanding issue of the capital improvement plan regulation changes. The committee unanimously voted to not endorse any of the items. Submitted for the record was an email from Bob Tait (Att. A). There seemed to be confusion about the remaining six items. One was separating appropriations, another was to mandate quarterly reports, mandating that the Council receive the CIP information when the Board of Finance gets it, the following up reporting and also that there be an ongoing report on capital projects. Most everything is being done. Emails from Bob Tait and Glen Santoro, from the bond council were also submitted, (Att. B & Att. C) that talk about different ways
combining appropriations may be important. A process is in place, by charter. A legal opinion from the Town Attorney was submitted (Att. D). The Board of Selectmen plays a very specific role in that they are the only entity in town that can encumber debt and call a town meeting. You cannot legislate another legislative body. Mr. Kortze was invited along with the First Selectman, Bob Tait, Jeff Capeci, Ben Spragg and Bill Hart to attend a Charter Revision meeting. Nobody at the meeting, except for Mr. Kortze, was in favor of bifurcation. He did not offer an opinion on behalf of the Board of Finance because he didn’t think it was their role. Some of the publications were not accurate on his comments, specifically on the notion he was against bifurcation. Research has been done on what is being done in different towns. He expressed there is a lot of money spent from the town to do Board of Education things and for
schools and auditoriums to do town things and how it would be difficult to separate that. Whatever the Charter Revision Commission decides to do should be geared toward ultimate clarity. Bifurcation can be added to the Board of Finance agenda to be discussed at a future meeting.
MINUTES: Mr. Gaston moved to approve the minutes of September 13, 2010. Mr. Waterbury seconded. These minutes will be added to the next agenda for approval.
FIRST SELECTMAN REPORT: Discussion during meeting.
FINANCE DIRECTOR REPORT: Discussion during meeting.
UNFINISHED BUSINESS:
1. Newtown Board of Education Monthly Financial Report, August 31, 2010: (Att. E) Mr. Kortze referred to the meeting he had with Mr. Hart (see New Business, item #3)
2. Board of Selectman Month to Date Financial Report & Budget Summary Report: (Att. F) Mr. Gaston asked about the status of the monthly financial reports from Fairfield Hills Authority. Mr. Tait said that the actuals on Fairfield Hills Authority is in the monthly budget report. Mr. Gaston is interested in more detail. Mr. Tait explained that their account is on our system and he could provide all the detail. Mr. Kearney questioned the impact statement (Att. G). He is concerned that projects move up that are on the CIP each year. He is not sure that some CIP projects would be approved if it was known there would be a large hit to the operational budget as the project nears completion. If there is a place holder for the amount, there should also be a place
holder for the operating expenses too.
NEW BUSINESS:
Discussion and possible action:
1. Town of Newtown CIP: The Board of Finance has until the end of November to submit the CIP to the Council. Mr. Kortze wants to discuss the CIP in more detail at a future meeting that will be recorded at the Municipal Center. Mr. Tait reported that Public Building and Site has taken over the Middle School Roof project. There have been twenty three responses from an RFQ put out for architects. Mr. Kortze wants conversation about space needs to be held in a larger venue. He said that the Board of Finance and the Council play a role and the Board of Selectmen play a critical role in the planning perspective.
2. CIP project summary sheet to include schedule of appropriations and bonding: Mr. Tait supplied a summary of all active CIP projects (Att. H). Mr. Kortze stated Mr. Davis of the Legislative Council is concerned about appropriations and improving the way the Council can understand what’s coming down the pike. Mr. Kortze would like a summary sheet at the time the Board of Finance presents to the Council of the projects, their timing and how they might be bundled. There are two separate issues, one is the legal question of the resolutions and the second is the bonding. There may be a need to separate projects as they come. The Board of Finance has the right to recommend a certain manner; the Council has the right to separate it. Mr. Tait suggested doing a summary
sheet for the grant reports.
3. Discussion on Board of Education transfers: The Board of Education has referred the issue of going back to the method of transfers to their policy committee. Mr. Kortze met with Bill Hart, Chair of the Board of Education. Mr. Hart indicated he thought the detail of transfers was important. They have received a report from Atty. Mooney that recommends the Board of Education go back to the system of transfers. Mr. Kortze has asked for the statute that states the Board of Education is only required to report their financials quarterly; he has yet to receive it.
4. Discussion on Council proposal of procedures and CIP recommendations: see Communications.
5. Resolution: Mr. Gaston waived the reading of the entire resolution entitled: RESOLUTION PROVIDING FOR A SPECIAL APPROPRIATION IN THE AMOUNT OF $2,070,000 FOR VARIOUS PUBLIC IMPROVEMENTS AS AUTHORIZED IN THE CAPITAL IMPROVEMENT PROGRAM (2010-2011 TO 2014-2015, INCLUSIVE) AND AUTHORIZING THE ISSUANCE OF $2,070,000 BONDS OF THE TOWN TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE. Mr. Portnoy seconded. All in favor.
Mr. Gaston moved the resolution entitled: RESOLUTION PROVIDING FOR A SPECIAL APPROPRIATION IN THE AMOUNT OF $2,070,000 FOR VARIOUS PUBLIC IMPROVEMENTS AS AUTHORIZED IN THE CAPITAL IMPROVEMENT PROGRAM (2010-2011 TO 2014-2015, INCLUSIVE) AND AUTHORIZING THE ISSUANCE OF $2,070,000 BONDS OF THE TOWN TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE. (Att. I) Mr. Kearney seconded. All in favor. It does not cost more to separate projects; we get charged by bond package.
6. Resolution: Mr. Waterbury waived the reading of the entire resolution entitled: RESOLUTION PROVIDING FOR A SPECIAL APPROPRIATION IN THE AMOUNT OF $1,500,000 FOR THE PLANNING, DESIGN AND CONSTRUCTION OF THE NEWTOWN HOOK AND LADDER FIRE HOUSE AS AUTHORIZED IN THE CAPITAL IMPROVEMENT PROGRAM (2010-2011 TO 2014-2015, INCLUSIVE) AND AUTHORIZING THE ISSUANCE OF $1,500,000 BONDS OF THE TOWN TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE. Mr. Kearney seconded. Mr. Gaston recused himself because although he doesn’t believe there is a conflict of interest he wants to avoid the perception of a conflict of interest. Mr. Waterbury moved the resolution entitled: RESOLUTION
PROVIDING FOR A SPECIAL APPROPRIATION IN THE AMOUNT OF $1,500,000 FOR THE PLANNING, DESIGN AND CONSTRUCTION OF THE NEWTOWN HOOK AND LADDER FIRE HOUSE AS AUTHORIZED IN THE CAPITAL IMPROVEMENT PROGRAM (2010-2011 TO 2014-2015, INCLUSIVE) AND AUTHORIZING THE ISSUANCE OF $1,500,000 BONDS OF THE TOWN TO MEET SAID APPROPRIATION AND PENDING THE ISSUANCE THEREOF THE MAKING OF TEMPORARY BORROWINGS FOR SUCH PURPOSE (Att. J). Mr. Kearney seconded. First Selectman Llodra stated the town has committed $500,000 a year for three years with the intent to help Hook and Ladder pay down their mortgage. The town is gifting them a $1,500,000 fund. This resolution isn’t bundled with the other projects because there is too much process to get through and unanswered questions. Mr. Tait wants to do it now because it’s good to be prepared to have the authorization. Hook and Ladder cannot spend the money, the town has the control. If they get through the
permitting process they will get a construction mortgage. This money will be helpful to them when going for a mortgage. The money will not be bonded until there is a contract. It is the understanding of the First Selectman that Hook and Ladder currently has $750,000. Mr. Portnoy was hesitant because he has so many questions. First Selectman Llodra said that this will not be a municipal building and the town will have no obligation should Hook and Ladder default on the mortgage. Mr. Waterbury retracted his motion; Mr. Kearney retracted his second. Mr. Portnoy moved to table this item. Mr. Waterbury seconded. All in favor. First Selectman Llodra suggested having David Grogins at the next meeting.
7. Transfers: Mr. Gaston moved the transfer of $16,675 from 01510-4060 Contractual Services to 01500-1004 Overtime (Att. K). Mr. Waterbury seconded. All in favor. First Selectman Llodra explained that although it takes longer it is cheaper for the town to complete street sweeping rather than contracting it out. The work is done all on overtime. Mr. Gaston moved the transfer of $7,100 from 01570-2000 Contingency to 01500-1004 Overtime. Mr. Waterbury seconded. One of the final budget acts of the Legislative Council was to move $45,000 from the overtime account of Public Works into contingency so that the town would have to ask for the money. All in favor. Mr. Gaston moved the transfer of $38,913 from 01570-2000 Contingency to 01500-1003
Payroll, $22,713; to 01500-1002 Payroll, $5,074; to 01240-2002 FICA $2,126 and to 01270-2003 Life Insurance, $9,000. Mr. Kearney seconded. All in favor.
ANNOUNCEMENTS: none.
ADJOURNMENT:
Having no further business the Board of Finance adjourned their regular meeting at 8:53 p.m.
_______________________________
Susan Marcinek, Clerk
Att. A: Email from R. Tait to J. Kortze re: appropriations
Att. B: Email from R. Tait to J. Kortze re: bond resolutions
Att. C: Email from G. Santoro re: bond resolutions
Att. D: memo from D. Grogins re: bond resolutions
Att. E: Board of Education Monthly Financial Report, Aug. 31, 2010
Att. F: Town of Newtown YTD Budget Report, Oct. 8, 2010
Att. G: Town of Newtown Financial Impact Statement
Att. H: Town of Newtown Project Status Summary Report
Att. I: Request letter from R. Tait to J. Kortze on special appropriation; $2,070,000 Resolution;
Excerpt for Minutes of Board of Finance Meeting, Oct. 14, 2010
Att. J: $1,500,000 Hook & Ladder Resolution
Att. K: Transfer
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