Wednesday, May 18, 2016
Board of Finance Meeting:
Call to order @ 7:30 PM
• Call to Order Acting Chairman Tim Main called the meeting to order at 7:30 PM. In attendance: Charles Steinhart, Tim Main, Bob Testa seated for Tim Pelland, Mustapha Ratib, Emile Pavlovics, Carolyn Howell
Absent: Tim Pelland & Alternate Chris Hundt
• Pledge to the Flag performed.
• Public Comments/Questions – None
• Item #4 –
• Selectman Shawn Murphy stated that IT Salary & P&Z Contract/Planner Position – not utilizing this money this fiscal year and Shawn is asking to transfer money from these accounts to the Attorney Account.
Bob Testa made motion to approve request/Charles Steinhart 2nd
Emile asked that we doublecheck the profit and loss to make sure that the funds are available in the account.
Upon review, Item #25.00 has $22,000 left in the account
Upon review , Item #11.06 has more than $10,000
5-1-0 Emile opposed
Charlie and Emile agree that a running list of accounts to keep track of line items that are unique to keep track of transfer requests/approvals-
#1 Boombridge
#2 we denied
#3 is the school
#4 is this approved transfer for Attorney Costs
(Tim for future transfers – we should have a running list and add to this list each time)
• Item #5-
• Board of Fiinance Budget 2016/2017 Review and Preparation
$246,101 in reserve fund as a surplus
• This includes the changes from the last meeting, which are updated (numbers reviewed and verified for accuracy.
• Tractor needs to be discussed at this meeting: Item #c1.10
• This does not include the EMS building and has to be added in.
• Emile asked Shawn to review items in CNR to make sure that he does not have any problems with these.
1. Used Equipment
2. Misc. Equipment
Shawn is questioning the criteria for CNR – Auditor said that the capital items carry over each year. Emile gives example of EMS money that was spoken of as a CNR item. Shawn does not have a clear distinction between CNR and Capital – wants to know what the distinction is. Emile – Capital is not legally binding and CNR – it is binding and have to spend on EMS and have to have a town meeting to approve. Emile stated that this is a Lawyer & Auditor ‘s opinion with no State Statute to back this up.
Emile would drop Capital for CNR.
Emile wants to know if there is extra money, what is to be done with it?
Emile much more comfortable with the 426,000 in CNR. Emile asked Shawn to clarify – can request it to be de-obligated – “it would go away and go back into the General Fund.” Selectmen would have it stay in capital until the Selectmen request that it be de-obligated.(Discussion pertains to new and used equipment)
Tim- asked question last June – is CNR. Mustapha- capital account should be for specific equipment – Emile- Highway Department has plans for money. This allows flexibility for the unexpected.
CNR – only Town Meeting can get it out.
Mustapha- $12,000 ? what to do with this money- CNR vs. Capital.
Emile- should lapse at end of the year.
Capital Fund “creating moving target without rules” – Emile Pavlovics
Deleting CNR from c1.00 & c.1.01
Shawn sees no problem with this.
Item C3.28(Ambulance) to carry forward
Assessor Reval – Capital Non- Recurring
Locking in this money for that purpose until the town votes at a Town Meeting to take this out.
• EMS Building to be added on line #c6.00(Center for Emergency Services) (assigned to CNR)
• Mustapha to add EMS payment to see where we are at -
• Latest revenues are in budget, as reported by Shawn
• Shawn feels that these are arbitrary cuts and will result in reduced services, for example, tree trimming – Contractual Services Highway – removed mini excavator was removed – will need money to rent a mini excavator – Shawn would have preferred that the Selectmen be able to choose where the reductions should be taken from rather than pin pointing certain line items – will affect services, public works and attorney services – negotiations may not be over and some expenses will spill into next year- 25k reduced to 20k(would allow to move forward without having to go to a town meeting. New activity in Tribal recognition line and they expect money to be spent early in the year for Tribal Recognition issues.
• After adding in EMS building cost – down $300,000 – work on the mil rate – discussion occurred.
• Shawn - ? Intergovernmental revenues(1st page) = A3 total = 4,875,138 –Shawn states that this number is incorrect and does not include new numbers from the State of Connecticut.
• 1.59 million project development cost - & Bond Anticipation Notes
• Shawn - ? to roll in cost of borrowing.
• ESC Capital
• New proposed number is $4,793,775
• (Shawn feels that it should go to School improvements and flagged as CNR.
• Rename c4 (To Reval Capital)
• Rename c5 to Total Capital School Building Improvements and c6 to Emergency Services Center (CES) Capital.
• #’s verified for accuracy - Short $381,507
• When you adjust the mil rate to 27.80 – increasing the mil rate by 1.7 mils including the reval and taking into account all of the cuts and includes payment for EMS ends up with $115,966 surplus.
• @ present time a little less than 10% of unassigned general fund balance and is minimal according to the auditor – Should have enough for 1 month if no revenue comes in. 8.5 is dead minimum, 9.9 is where we are and 12 is where it should be.
** Shawn – need to get estimate for next meeting – Approached financial manager is on hold until there is a recount on Tuesday – need to roll cost of borrowing into cost of project and put into next years’ numbers ***
Public Comments:
Mr. Scarchilli requested that we make an exception and let him speak briefly so he could take his son home to do his homework.
Ed Scarchilli (Tax Payer) Provided Budget Information from Canterbury, which is according to Ed, almost identical to North Stonington –
Copies of which Tim Main has to review.
The town general operating budget according to Ed is under 3 million & the school budget is $11,400,00.
Mr. Scargilli is asking that we look at this information and see if we can make cuts as well.
3-2-1 Motion by Bob Testa to forward 27.8 to the the public with the capital item restored motioned & seconded by Tim Main. Mustapha Abstained. Carolyn & Emile Voted No.
Discussion occurred: To ask the Selectmen & Board of Education to each cut ½ of their requested increase out of their Operating Expense.(Not Capital) All Capital is left in.
Motion is made by Carolyn Howell– In light of the possible impact of the School Modernization Project to the Town of North Stonington. We are respectfully requesting that from the Budget being submitted at the Town Hearing, On Monday, May 23, 2016, that the General Government Operating Expense Increase (Change) be reduced by 50% and that the Education Budget increase(Change) also be reduced by 50% . Seconded by Charlie Steinhart
5-1-0 Emile voted no.
Plan of action:
Mustapha to forward the budget that was approved.
Tim Main is going to forward notes/message to Shawn Murphy & Mr. Bob Carlson
Future Strategies:
Bob Testa made a motion to approve the minutes of May 4, 2016, Carolyn seconded
4-0-2 (Emile & Carolyn Abstained)
Bob Testa made a motion to approve the minutes of May 11, 2016, Carolyn seconded. Approved 6-0-0
Public Comments –
Mrs. Christy Cathcart, I believe from Wyassup Road, who has spoken at other Tri-Board Meetings, spoke to the fact that our town is very divided and needs to heal. She thanked the BOF for working to keep taxes down.
Brian Rathbun- Feels that operating expenses need to be cut.
Tim Main Sr. – Spoke about needing to be prepared for the Town Budget Hearing.
Tim Main made a motion to adjourn and Charlie seconded. Approved
6-0-0 Adjourned @ 11:45 pm
Respectfully Submitted by
Carolyn A. Howell, Board of Finance
Filling in for Tim Pelland as Secretary
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