The Board of Finance held a regular meeting on Thursday, January 27, 2011 at the C.H. Booth Library, Main Street, Newtown, CT. John Kortze called the meeting to order at 7:30pm.
PRESENT: John Kortze, James Gaston, Michael Portnoy and Harry Waterbury
ABSENT: Martin Gersten, Joseph Kearney
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait, four members of the public and no members of the press.
VOTER COMMENTS: none.
COMMUNICATIONS: A follow up email from Bruce Walczak (Att. A) was submitted regarding email communication between various elected officials and residents discussing business. The original concern Mr. Kortze had stemmed from a conversation he had with Tom Hennick of FOI. The bottom line is it is not appropriate for emails to go back and forth between elected officials and members of the public. Submitted for record were the timeline of Kevin’s Community Center (Att. B), a pension fund editorial (Att. C), a Legislative Alert (Att. D) and
items Mr. Kortze handed out at the Board of Education meeting with the auditor (Att. E). Mr. Gaston stated that in Mr. Walczak’s email notes that even a conversation between two elected officials on the same board can be a violation of the Freedom of Information Act. That is a very limited situation such as if one person was talking to three other people on the board, another person talking to four or five other people on the board, basically collaborating to secure votes, positions or opinions. It is not a violation to have a one on one conversation on issues.
FIRST SELECTMAN’S REPORT: The storm report through January 25, 2011 was submitted (Att. F) with a document on community concerns. The account also funds sweeping and the annual clearing of the storm drains. A review of the Selectmen budget was submitted (Att. G) with an increase of 2.7% and identifying the six areas that are the major contributors to the increase. The intention of the Governor is to flat fund ECS and hold the towns harmless, providing the same level of support for ECS that was provided last year. Where they will get the money (14%) is the question. The House Chair of the Education Subcommittee, Andy Fleishman, will push for a delay of the implementation of Public Act 10-111, the Secondary School Reform, until the State can fund it. To implement the act in
today’s money would cost us $1,000,000. The act was passed last year for implementation in 2018. A lead up to that will cost the town money by 2013, if not sooner. First Selectman Llodra noted that overtime in the highway department begins at the end of the workday. Mr. Gaston asked why the Police Commission is interested in interviewing officers now. First Selectman Llodra explained that two officers have recently resigned and she believes the Police Commission would like to get ahead of what they think might be an opportunity to replace those two positions. The police budget is funded for 46 positions in this year budget. Mr. Gaston is concerned about the cost of employing two officers that may be cut during the budget process. First Selectman Llodra stated that the police department is down three active positions and one was reduced last year. One officer left to go to the State Police. The impact of that is
costly in overtime. First Selectman Llodra first raised the concern about Public Act 10-111 at HVCEO. Other towns are voicing opposition to this. CCM, COST and CAPS (the Superintendents Association) number one effort is to hold this back. A pre-proposal conference was held relative to the shared service RFQ. Nineteen organizations responded with about 30 people. The response date has been postponed to Feb. 7 to turn in final proposals. Mr. Kortze asked if there was a population in CT that didn’t think the shared systems worked well. First Selectman Llodra said it is up and running elsewhere. There is apprehension in leaving one system to go to another system; most of the concern is around the notion of change.
FINANCE DIRECTOR REPORT: The self insurance actual experience numbers are favorable. The town side interacted with the education side in doing the insurance budget numbers. The conversation was positive. There has not been a final number from the consultant. The analysis of the self insurance medical fund has been shared with Ron Bienkowski and the consultant; the consultant agrees with it. When received, the number will be solid. Mr. Tait went over the Town of Newtown Debt Issuance (Att. H). The Town of Newtown Commercial Development Update was distributed (Att. I) Mr. Kortze would like to know when the commercial development will be on the tax roll and the impact it will have. Mr. Portnoy questioned the decrease in the numbers of employees at the Board
of Education.
MINUTES: Mr. Gaston moved the approval of the minutes dated 12/13/10. Mr. Waterbury seconded. All in favor. Mr. Gaston moved the approval of the minutes dated 12/15/10. Mr. Portnoy seconded. All in favor.
UNFINISHED BUSINESS
Discussion and possible action:
1. Town of Newtown Year to Date Budget Report, Dec. 31, 2010: (Att. J) Mr. Tait reported tax collection is healthy, it looks like we will make budget. The Town Clerk conveyance fees will be more than budget, along with other Town Clerk fees. We are watching Legal Services.
2. Board of Education Monthly Financial Report, Nov. 30, 2010 & Dec. 31, 2010: (Att. K & L). It appears that transfers are occurring. The Board of Education did not vote on transfers individually because they were with an object code; the Board of Education did vote on the report as presented. Negative dollar figures on the report have no category. That is money that is going to be covered with ARRA funds. The consultant hired for school issues was not discussed at the Board of Education level.
3. Board of Education meeting with auditor: (Att. E, again) Mr. Hart did a good job trying to facilitate the concern the Board of Finance had. The auditor did a good job of explaining the highlights and points of the audit, the management letter. He did say that the impact of not doing transfers could rise to the level of a finding. There was an acknowledgement that the Board of Education has to go back and look at their policy and transfers have to be done. There was also discussion of going back to last year’s financials and making corrections. The Board of Education’s policy indicates that 5% or $10,000, whichever is greater, requires a transfer to be acted on by the Board of Education. Mr. Buzzi penned a response that they were not in violation,
indicating his response was from the Board of Education. The Board of Education did not discuss it or vote on it.
NEW BUSINESS
Discussion and possible action:
- Transfers: Mr. Gaston moved the transfer in the amount of $13,600 from 01350-4003 Worker's Compensation to 01100-2013 Selectman Expenses. Mr. Waterbury seconded. First Selectman Llodra explained that the Fairfield Hills Master Plan Review Committee is planning public outreach that includes engaging the community in a discussion to build understanding and develop consensus and from that derive recommendations that can be brought back to the Board of Selectman. Two major aspects are to use a facilitator and to do a survey. Mr. Kortze asked why the Review Committee couldn’t do this themselves. First Selectman Llodra said that it is a good idea to get a facilitator to maximize community development. The survey is not a conflict of interest for Mr. Lundquist, who is
the President of The Harrison Group because this is a material and production cost; there would be no profit to The Harrison Group. There will be a core group of twelve who will be trained to engage other groups in the process. Mr. Kortze doesn’t disagree with the notion but thought that what was the group was for. There is an appointed body which is now going to come up with another group of volunteers that we are going to pay. Why can’t they volunteer? Mr. Gaston said that focus groups without a facilitator flounder. He thinks they are trying to get people outside of the focus of those that have already made up their mind; it makes sense. First Selectman Llodra said the 2 ½ day process includes upfront training of people with a higher level of commitment. That level of effort is worth responding to with an honorary. Professional services are not bid. Motion passed: YES: Gaston, Waterbury, Portnoy. NO: Kortze.
Mr. Gaston moved the transfer in the amount of $23,853 from 01570-2000 Contingency to sixteen various line items in various amounts. (Attachment M). Mr. Portnoy seconded. All in favor.
- Appropriating $150K returned by the BOE to the Cap-Non Recurring account: Mr. Gaston moved to resolve that if the Board of Education would like the Board of Finance to take action that they submit a special appropriation to the Board of Finance to go through the process. Mr. Portnoy seconded. All in favor.
- Referral of CIP: (Att. N) The Legislative Council Subcommittee sent the issue of the CIP back to the Board of Finance. The items referred and Mr. Taits responses were discussed (Att. O). The debt service as a percent of budget is very good the first two years; thereafter we are at 10%. A $500,000 project represents about $45,000 the first year in debt service. The first four years is a very tight debt service schedule. In effect Hook & Ladder has been pushed out a year. Hook & Ladder is ready to proceed in the spring if they get approval from all the commissions. In terms of the debt schedule it can fit in. $500,000 should be put in year 2013-2014. First Selectman Llodra said that a lot of thought was put into developing the CIP at the
origin. There was nothing arbitrary in the decision making at the Board of Selectman level. The Boards were very careful with money, really looked at the debt cap. She doesn’t think the subcommittee truly understands the impact over time of making decisions and making changes as how things are prioritized. The Legislative Council has not yet approved the CIP. Mr. Gaston would like to hear from the whole Board of Selectmen. First Selectman Llodra noted that priorities were based on the debt and not on a personal preference of one project over another to try to fit everything within the debt cap. If there were to be some reasonable shifts she would like it to go back to the Board of Selectmen. The 5th year in the CIP is the opportunity to address debt. First Selectman Llodra is in favor of reducing the debt cap from 10% to 9%. There are not good numbers in the 5th year because it’s too far
out to know a true cost. Specific projects, such as the Community Center, can be looked at to reduce amounts to fit within the 9% debt cap. First Selectman Llodra will take it back to the Selectmen.
The management letter will be on the next agenda. Mr. Kortze said that there is a BOE policy issue that is clear as to what needs to occur that was somewhat convoluted with the September motion to only to transfers in the circumstances of errors and corrections. There are procedural issues that need to be addressed. Mr. Kortze will work on language to respond officially.
ADJOURNMENT:
Having no further business the Board of Finance adjourned their special meeting at 9:30 p.m.
_______________________________
Susan Marcinek, Clerk
Att. A: B. Walczak email dated 12/17/10
Att. B: Kevin’s Community Center Timeline
Att. C: Pension Fund Editorial
Att. D: Legislative Alert
Att. E: J. Kortze email to B. Hart dated 12/30/10, BOE policies, notation of BOE minutes dated 11/4/09, 11/17/09, 9/7/10, portions of the Charter
Att. F: Storm Report thru 1/25/11
Att. G: Budget Review
Att. H: TON Debt Issuance, 2/23/11
Att. I: TON Commercial Development Update, Jan. 2011
Att. J: TON Year to Date Budget Report, 1/6/11
Att. K: BOE Monthly Financial Report, 11/30/10
Att. L: BOE Monthly Financial Report, 12/31/10
Att. M: Transfer
Att. N: TON CIP
Att. O: CIP referral from Legislative Council Finance Committee to the BOF
MOTIONS FROM THE BOARD OF FINANCE MEETING OF 1/27/11
The Board of Finance held a regular meeting on Wednesday, January 27, 2011 at the C.H. Booth Library, Main Street, Newtown, CT. John Kortze called the meeting to order at 7:30pm.
PRESENT: John Kortze, James Gaston, Michael Portnoy and Harry Waterbury
ABSENT: Martin Gersten, Joseph Kearney
ALSO PRESENT: First Selectman E. Patricia Llodra, Finance Director Robert Tait, four members of the public and no members of the press.
VOTER COMMENTS: none.
COMMUNICATIONS:
MINUTES: Mr. Gaston moved the approval of the minutes dated 12/13/10. Mr. Waterbury seconded. All in favor. Mr. Gaston moved the approval of the minutes dated 12/15/10. Mr. Portnoy seconded. All in favor.
UNFINISHED BUSINESS
Discussion and possible action:
NEW BUSINESS
Discussion and possible action:
- Transfers: Mr. Gaston moved the transfer in the amount of $13,600 from 01350-4003 Worker’s Compensation to 01100-2013 Selectman Expenses. Mr. Waterbury seconded. Motion passed: YES: Gaston, Waterbury, Portnoy. NO: Kortze
Mr. Gaston moved the transfer in the amount of $23,853 from 01570-2000 Contingency to sixteen various line items in various amounts. (Attachment). Mr. Portnoy seconded. All in favor.
- Appropriating $150K returned by the BOE to the Cap-Non Recurring account: Mr. Gaston moved to resolve that if the Board of Education would like the Board of Finance to take action that they submit a special appropriation to the Board of Finance to go through the process. Mr. Portnoy seconded. All in favor.
ADJOURNMENT:
Having no further business the Board of Finance adjourned their special meeting at 9:30 p.m.
_______________________________
Susan Marcinek, Clerk
Att: transfer
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