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Board of Finance
REGULAR MEETING MINUTES
MAY 18, 2010 at 7:30 P.M.
Town Hall First Floor Conference Room
- CALL TO ORDER Chairman, Carl Fortuna, called the regular meeting of the Board of Finance to order at 7:30 p.m.
Attendant Members Absent Members
Carl Fortuna, Chairman George Whelen, Vice Chairman
John O’Brien
Lee Sparaco
Grant Westerson
Barry O’Nell
David LaMay
IN ATTENDANCE:
Carol Manning, Selectman
Bob Fish, Treasurer
Michael Spera, Chief of Police
Gerri Lewis, Clerk
MINUTES:
Motion: To approve the April 27, 2010 Public Hearing minutes as presented.
Moved: G. Westerson Second: Barry O’Nell
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
Motion: To approve the April 27, 2010 Special Meeting minutes as presented.
Moved: G. Westerson Second: Lee Sparaco
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
TREASURER’S REPORT:
Treasurer Fish handed out the monthly report for the general fund operating budgets for the fiscal year 09/10 April 30, 2010.
He reported that the expenditures were running approximately 1.5% ahead of last year and that the revenues were approximately 1.5% behind last year which is of some concern. He noted that part of the problem was the $200K in current taxes that were not collected because of the bills going out late in January. He noted state revenue is coming in where they are supposed to and which is what he expected. Mr. Fish reported that Selectman Pace sent a memo to all departments to watch their budgets carefully and to not over spend.
Mr. Sparaco noted that in looking at the fund expenditures, if a department knows they are going over budget, they should come to the BOF so that it can be addressed. If it is going to be under $25K the BOF can then appropriate the necessary funds, but if a department is $25K or over, the BOF must send this to a town meeting. Chairman Fortuna noted that every year the departments get a letter from the BOF informing them to come to the B of F if they are going over budget. Mr. Sparaco indicated that state statute does not allow budgets to be over spent without additional B of F appropriation and he states that this continually happens.
Mr. Sparaco asked for an accounting for the Capital Outlay Sinking Fund and the Sewer fund from Mr. Fish to be discussed at the next meeting.
Mr. Fish discussed the Moody’s rating, which we went up to AA2. He discussed the failure by the State legislature to extend the increased conveyance tax which will effect town revenues. The potential health insurance savings were discussed but there is no final report to date. There were several questions with regard to the savings. Mr. O’Nell asked how this would be applied to the budget. Mr. Fish responded that the B of F would set a lower mil rate. Mr. Fish drew the BOF’s attention to the Financial Report on pages 48 & 49 and discussed how it would affect the general government budget and the BOE budget using these pages as an example.
Mr. Fortuna brought up the auditor contract and his email of the same. He discussed the engagement letter and proposal from Kostin & Rufkus. The engagement letter, it was noted, was for the current fiscal year in the amount of $42,500. In addition the proposal for additional auditing services for the next 2 years would be $43,500 and $44,650.
Chairman Fortuna asked for a motion to add the auditors discussion to the agenda.
Motion: To add to the agenda the item concerning the Kostin & Rufkus proposals for the town of old saybrook.
Moved: L. Sparaco Second: B. O’Nell
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
Motion: To authorize Chairman Fortuna to sign the engagement letter from Kostin & Rufkus for the current fiscal year.
Moved: B. O’Nell Second: G. Westerson
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
Motion: To consider the 3 year proposal from Kostin & Rufkus.
Moved: G. Westerson Second: L. Sparaco
Discussion: A discussion followed with regard to the benefit of engaging Kostin & Rufkus for the next 3 years, including the current fiscal year. The Board felt this was a good decision with Mr. Fish concurring.
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
Motion: To accept the 3 year proposal from Kostin & Rufkus as follows: $42,500 for the current fiscal year; $43,500 for the year 2011; and $44,650 for the year 2012.
Moved: B. O’Nell Second: G. Westerson
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
There was a discussion with regard to the question of whether or not the auditors should come to a meeting. Chairman Fortuna will invite them to a meeting in June or July. Mr. Fish brought up the Auditor’s management letter recommendations and his 4-14-10 response, which was not distributed to the Board at large. The Chairman will forward the response from Mr. Fish to the clerk, Gerri Lewis, and Gerri will distribute to the Board of Finance and Ms. Manning as requested.
Ms. Manning questioned who has oversight of the WPCA and WWMD with regard to finances. Mr. Sparaco noted that the BOF was promised flow charts and quarterly reports and they were never received. A discussion followed whereby the Board thought it best to get the WPCA in to discuss finances. Chairman Fortuna agreed to contact the chairman of the WPCA, Mr. Evangelisti, Robbie Marshall and any other person with relevant information to come to a BOF meeting.
Chairman Fortuna, at this time, called upon Chief Spera for an update on the PD move.
Chief Spera discussed the following:
- Lease signed by BOS;
- PD will be in space w/in 30 days;
- Space is 20K square feet; $3,000/mo for 2 years;
- 3rd yr./$4,000/mo.
- Owner replaced doors, lighting and donated $42K in renovations;
- All contents of Main Street buildings, including out buildings will go into the new space;
- PD will pay utilities;
- Town abatement for all municipal taxes $6,900/yr;
- Upon exiting town would restore whatever landlord feels reasonable;
- Officers are painting; doing carpentry work; moving; saving the town money;
- Town has applied for FEMA; no final report yet
- Insurance has advanced some monies and PD is drawing down;
- Lease effective July 1, 2010; will be moving in June, 2010;
- Officers putting in extra time
Mr. Fortuna thanked Chief Spera for coming to the meeting and giving an update on their move.
There being no further business, Chairman Fortuna asked for a motion to adjourn.
Motion: To adjourn at 8:48 P.M.
Moved: G. Westerson Second: D. LaMay
Discussion: None
Approved: C. Fortuna; B. O’Nell; J. O’Brien; G. Westerson; L. Sparaco; D. LaMay 6-0-0 |
Respectfully Submitted,
Gerri Lewis, Clerk
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