North Stonington Board of Finance
Meeting Minutes
of
Wednesday December 5, 2012
New Town Hall
North Stonington, CT
- Call to Order: Chairman Dan Spring called the meeting to order at 7:30 PM.~ Brent Woodward, Mustapha Ratib, Emile Pavolvics, Peter Nimirowski and Mike Urgo were present.
- Public Comments and Questions: Joe Gross asked that a definition of terms used within the budget be available to assist the voters in better understanding the budget language.
In response to his question about Section 7-344 (Appropriations. Laying of Taxes) that noted if the municipality population was over 5,000 the budget needed to be published in a local newspaper, it was reiterated that the BOF minutes of August 15, 2012 had clarified the issue. A Town ordinance allows paper copies in numbers equaling ten percent of the voting population in lieu of this requirement.
- Tax Reports; Sandra Steinhart: Ms Steinhart briefed the Board about the recent second sending of tax bills reflecting the revised mill rate of 23.75 and noted the cost of the second billing could run as high as $11,000. Credit statements should be sent by December 15, 2012. $68,000 of credit is outstanding.
Ms Steinhart stated that uncollected back taxes are on the rise and as many as twenty people have payment plans. The Board requested that a standard policy be defined for unpaid taxes so as to improve flow down if the situation were to arise. She agreed to formalize the procedure for the existing plans and those to come.
Regarding the Auditor’s recommendation that tax receipts be deposited into a separation account, Ms Steinhart felt strongly that doing so would result in a reduction of checks and balances. This item will receive future review by the Board.
The November 11, 2012 tax report and the same month from the previous year were received.
- BOE: RISSA / Policy Review/ Expenditure Report: School Superintendent Peter Nero, BOE Chairman Robert Testa and school business manager Chuck McCarthy spoke on behave of creating an account (Repair and Improvement of School Structure Account) funded by surplus education dollars as defined in Section 10-248a of the State statutes. The funds in this account would be used for emergency repair and improvement of school structures. It was proposed that the governance of the funds would be a committee consisting of the first selectmen, BOF chairman, BOE chairman and the Superintendent of Education (non voting participant). Arguments for using Capital Nonrecurring (CNR) accounts, which is the Town’s standard for funding unique projects, were presented by the BOF. Chuck McCarthy agreed to check if
other towns had such an account. As no resolution was reached, this item will continue to be a discussed at subsequent BOF meetings.
The November, 2012 BOE reconciliation report dated December 8, 2012 was received.
5. BOS: Audit Review; Town Meeting; Business Manager: First Selectman Nick Mullane provided the Board a list of recommended funds from CRN that could be moved into the general fund if approved at a Town meeting that is scheduled for December 17, 2012.
A motion was made by Dan Spring recommending that the transfer of the following unused fund balances from completed projects and future project balances in the Capital Non Recurring Fund (CNR) to the General Fund Unassigned Fund Line be brought to a Town meeting. The motion was seconded by Peter Nimirowski and passed 6-0-0.
- Recreation Courts $ 300
- School Boiler Project $ 5,530
- Engine 1 Fire Truck $ 1,610
- OTH Solar Energy $ 9,405
- Future Projects $ 852,517
- Other Post Employment Benefits $ 130,000*
Total $ 999,362
* Approved during the November 14, 2012 BOF meeting.
Nick Mullane informed the Board of the immediate need to seek BOF approval to purchase a used 2005 utility truck that can be used for snow removal for $65,000. Emile Pavolvics reminded the Board that it was normal to include additional appropriations on meeting agendas to give the public the opportunity to participate in the discussion. Dan Spring noted the exception saying that in the future such items would be handled on a case by case basis.
A motion was made by Dan Spring recommending that an additional appropriation of $65,000 for the purchase of a used truck and equipment be brought to a Town meeting. The funds will be placed in Capital Line Item CC1.07 Dump Truck/Sander/Plow. The motion was seconded by Mustapha Ratib and passed 5-1-0. Emile Pavolvics was opposed.
Chuck McCarthy, who is retiring as school business manager at the end of the school year, advised the Board that his job description goes well beyond financial matters. In his opinion a single Town business manager responsible for both the government and education budgets would not have the capacity to support the nonfinancial functions as well. In short, two people would be needed.
Meyers & Company proposal for non-audit services dated November 19, 2012 has been received and will be executed by the BOS. The services focused on the following:
- Identifying critical areas of internal control
- Assist in process change of critical areas
- Identify alternatives to existing controls
- Provide assistance in the implementation of any changes
- Training as needed
Peter Nimirowski moved to approve the minutes of November 14, 2012 as presented. The motion was seconded by Dan Spring and passed 5-0-1. Mike Urgo abstained.
7. Future Strategies: Deferred.
8. Adjournment:
A motion was made by Dan Spring to adjourn. The motion was seconded by Mike Urgo and passed 6-0-0. The meeting was adjourned at 11:52 PM.
Respectfully Submitted
Brent Woodward
Secretary, Board of Finance
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