MINUTES
REGULAR MEETING
MARCH 3, 2009 at 7:30 P.M.
PASHBESHAUKE PAVILION
133 COLLEGE ST. EXT
I. CALL TO ORDER Chairman, Carl Fortuna, called the March 3, 2009 regular meeting of the Board of Finance to order at 7:31 p.m.
Attendant Members Absent Members
Carl Fortuna, Chairman Lee Sparaco
George Whelen, Vice Chairman Robert Finch
David LaMay
Glenis G. Caouette
John O’Brien
IN ATTENDANCE:
Michael Pace, First Selectman
Robert Fish, Treasurer
Barry E. Maynard, Tax Collector
Sarah Becker, Town Clerk
Larry Bonin, Director, Public Works
Sandra Harder, Co-Chair, Budget & Fiscal Committee BOE
Madge Fish, Vice Chairman, Zoning Commission
Christina Burnham, Chairman, Police Commission
Gerri Lewis, Clerk
COMMENTS FROM THE PUBLIC: There were questions and comments from the public regarding the following:
• Bonding, and the refinance of several bond issues
• Town budget and the explanation of the presentation of the budget vs. expenditures.
• A comment concerning a four day work/school week
• Harbor Management interest on funds;
• Septic System funding; (re grant from State);
MINUTES: Mr. Fortuna asked for a motion on the minutes of the February 17, 2009 meeting.
Motion: To approve the minutes of February 17, 2009 as presented.
Moved: D. LaMay Second: J. O’Brien
Discussion: None
Approved: C. Fortuna; G. Caouette; D. LaMay; R. Finch; G. Whelen; J. O’Brien;
6-0-0
TREASURER’S REPORT: Mr. Fish presented his report. He noted that as of the end of February, 2009, 99.2 of taxes were collected. He reported that the back taxes are at almost 200%. He noted that we would be receiving the telecommunication taxes in the amount of $92,800 shortly. Mr. Fish reported local fees were starting to fade, but predicted a wash by June 30, 2009.
Mr. Fish also reported that the Acton Library had a problem with their HVAC system. Three heat pumps needed to be repaired. The cost would be $6,143.52. Mr. Fish suggested that the money could come out of the Capital Outlay Sinking Fund, under uncommitted funds. He reported the balance in this fund to be $17, 437.00.
Mr. Fortuna asked for a motion on this.
Motion: To move $6,143.52 from “uncommitted funds” out of the Capital Outlay Sinking Fund to repair the heat pumps at the Acton Library.
Moved: C. Fortuna Second: G. Caouette
Discussion: None
Approved: C. Fortuna; G. Caouette; D. LaMay; G. Whelen; J. O’Brien;
5-0-0
Mr. Fish reported that the Town would be doing Re-funding as early as March 4th. He noted that the bond consultant wanted to have the bond sale as soon as possible because our savings of $300K is starting to slip.
Mr. Fish reported that the town received a letter from Moody’s Rating. Old Saybrook has a AA3 rating. This will be published by Moody. Mr. Fish read from the letter which stated two very important factors for Old Saybrook, thus their high rating.
1. Satisfactory financial position which benefits from sound management; and
2. Debt burden expected to remain low.
3. There was comment on the Town’s undesignated fund balance being at 5.5%. It is desirable for that fund balance to be closer to 8.5%. Mr. Fortuna commented that in this environment, it is difficult to find monies to fund the undesignated fund balance.
SELECTMAN’S REPORT: Mr. Pace discussed the ’09 – ‘10 budget briefly with the Board of Finance. He called their attention to the following:
• Bonded Indebtedness and the detailed structure of the same re school construction; he noted that the general government was down $220K or 1.5%; this is a per capita cost of $21.00.
• Capital Outlay Sinking Fund; fire department apparatus will come out of this fund.
• Political Subdivisions – to address various segments of our population; Mr. Pace spoke on a community collaborative. Its purpose is to solve family community problems together.
• 5 Year Capital Improvement Program; including Acton Library Computer Network; Fire Department; Parks & Recreation; Police; Public Works; Town Clerk;
a. Fire Department officer reported a grant from FEMA for $84,595.00 for staff and First Responders. JT reported that they would be using it for continuing education; he also reported that the fire department would be participating in a Public Service Announcement sponsored and produced by Sonalyst to be used as a recruiting commercial.
Mr. Pace continued to note that there will be no layoffs and no cuts in programs. He noted that Old Saybrook is a full service town with a full time stand alone Police Department and a full time stand alone Board of Education. He went on further to say we were fortunate to control the destiny within our borders.
Mr. Bonin reported the use of sand and salt during this last storm. He noted that the huge cost is not the preparation and plowing; it’s the sand and salt.
COMMENTS FROM THE CHAIR: Mr. Fortuna discussed the email the BOF received from the Police Department with regard to Bio-terrorism and the vaccination forms that should be completed and returned to the Police Department. He also introduced the email correspondence between the fire department and Mr. O’Brien.
Mr. O’Brien had questions with regard to the new fire boat and its pump; explanation of NFPA standards and the like. JT discussed how the standards are dictated by the NFPA and the reasons for the same. He also reported on a fire that could not be contained because of the lack of penetration and suppression due to a 250 gpm pump. He also explained how the ISO (Independent Standards Testing) determines fire insurance costs for towns. There were a comment from Carol Manning that she felt Saybrook was undertaking a bigger part of the Lower CT Valley burden in paying for this boat. JT discussed how lots of fire suppression equipment is shared amongst the neighboring towns.
At this time, Treasurer Fish asked to be heard. He discussed the idea of borrowing the town’s own funds; investing in short term CD’s; banks and their new products and interest rates. While interest rates are very low, Mr. Fish wondered if the Town should not take on slightly more risk to increase its return on its money. However, some of these higher interest accounts are not FDIC insured. Mr. Fish asked if the BOF would appoint 2 members to meet with him so that a strategy going forward could be discussed. Mr. LaMay and Ms. Cauouette volunteered.
COMMENTS FROM THE PUBLIC: Several questions from the public concerning the following were discussed:
• Pension fund and how it has fared in this market;
• The issue of expenditures from prior years not being published in the current budget was raised; it was explained that this information is readily accessible in the Town report.
• 4 days work week; 4 day school week
At this time Mr. Fortuna thanked everyone and asked for a motion to adjourn.
Motion: To adjourn at 9:06 p.m.
Moved: G. Whelen Second: J. O’Brien
Discussion: None
Approved: C. Fortuna; G. Whelen; G. Caouette; D. LaMay; J. O’Brien
5-0-0
Respectfully Submitted,
Gerri Lewis, Clerk
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