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 TOWN OF OLD SAYBROOK
Board of Finance |
302 Main Street Old Saybrook, Connecticut 06475-1741 |
MINUTES OCTOBER 18, 2011 7:00 P.M. First Floor Conference Room Old Saybrook Town Hall |
CALL TO ORDER Chairman, Carl Fortuna, called the meeting of the Board of Finance to order at 7:00 P.M.
Attendant Members Absent Members
Carl Fortuna, Chairman
Grant Westerson
David LaMay
Lee Sparaco
Barry O’Nell
John O’Brien
In Attendance
Michael Pace, First Selectman
William Peace, Selectman
Bob Fish, Treasurer
Michael Spera, Chief of Police
John Dunn, Fire Chief
Julie Pendleton, Direction of Finance & Operations, BOE
Gerri Lewis, Clerk
Public Comment: None
Chairman Fortuna asked for a motion on the June 7, 2011 minutes
.
Motion: To approve the minutes of June 7, 2011 as presented:
Moved: C. Fortuna Second: G. Westerson
Discussion: None
Approved: 6-0-0
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At this time Mr. Fortuna asked for a motion on the August 2, 2011 minutes.
Motion: To approve the minutes of August 2, 2011 as presented:
Moved: B. O’Nell Second: C. Fortuna
Discussion: None
Approved: 6-0-0
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WPCA Update:
Mr. Evangelisti gave a run down on the construction of the septic systems. The first phase, SA1 is within 5 homes of being done. He reported that the public accepted the contractors openly and were very cooperative. Mr. O’Brien asked if the State had completion dates. Mr. Evangelisti replied that they had, but all are very aware of this Pilot Program and that it may be delayed or slightly behind schedule. He reported that testing is on track and implementation is very close to being on schedule. He reported that after negotiations with the Department of Health and the DEEP, they are all in sync. Mr. Evangelisti noted that there are bound to be issues but the people are very appreciative of the quality materials. He noted that testing firms make sure that the quality of materials
meet the specifications of the drawings. Mr. Evangelisti noted that a big issue is the vehicles which are in the area. He will contact the P.D. about this.
Mr. Evangelisti reported that the next phases, SA2 and SA3 will go out to bid shortly. Mr. O’Nell asked what the average cost was to which Mr. Evangelisti replied that no two systems are alike and the cost is on a case by case basis.
Ms. Marshall noted that SA2 and SA3 are in the design phase and the bids go out in about a month. She noted that there are new approaches in the bid package. Ms. Marshall noted that there is an informational meeting for the homeowners involved. They have a month to return the application for Clean Water Funding. She also reported that there will be 2 demo systems. One will be Harvey’s Beach and the other Town Beach. Ms. Marshall also discussed the potential for Community Systems in beach areas.
Mr. Pace spoke on scheduling. He noted that they are trying to find ways to reduce costs. He noted that on the finance side there was $1.4M set aside for a sewer fund using dollar reimbursements to keep the cash flow. In the current model, if it has to be paid back in 3 years, we will have the money. It will not hit the tax base hard. Mr. Pace presented a notebook of information “Decentralized Wastewater Management Project” with communications to and from DEEP, number charts, which he gave to the clerk to copy
for the BOF. The Board received a copy this evening.
Mr. Pace noted that everything is “unfolding” as planned and money is being saved. There were a lot of up front costs, but Old Saybrook is making reasonable and substantial breakthroughs.
Mr. Fish noted that with regard to spending down the sewer fund, the amount is pretty much the same as it was 2-3 years ago. Reimbursements from the State Clean Water Fund have been coming in well.
Board of Education:
Attention was drawn to a memo from Superintendent Onofrio and Ms. Pendleton, Director of Operations, Facilities and Finance regarding the Financial Status 2011-2012. Special Education costs, encumbrances and expenditures have gone over the appropriation for 2011-2012. There are issues with the high school air conditioning unit which unexpectedly failed. She noted that it is a struggle to make any headway with large projects such as roofs and windows. Ms. Pendleton noted that in the future, a capital account is requested to cover excessive expenditures. Mr. Sparaco inquired regarding the enrollment this year as compared to last year. As all agreed, the big item is Special Ed. Mr. Pace reported that the big issue for next year and going forward is that the ECS formula is being
looked at again and it will not benefit small towns. Mr. Pace noted that this could be a major impact on our town.
Mr. LaMay asked if there are any contracts to be negotiated. Ms. Pendleton reported that yes, the administrators and custodians contracts. She also noted that they are looking favorable.
Mr. Fortuna noted that a 2% increase isn’t what will hurt the town. It’s the health insurance costs. Ms. Pendleton reported that she and Mr. Pace attended a meeting with regard to self insurance. She noted that this model may be about a year out. Mr. Pace noted that there are 4 towns that are interested. Mr. LaMay asked if another town’s “bad year” could affect another town. Mr. Pace answered that how each town is involved in the model; how the plan is managed, funded, etc. is what could affect another town.
Mr. Fortuna thanked Ms. Pendleton and asked Mr. Fish for his report.
Treasurer’s Report:
Mr. Fish went over the General Fund Revenues, Budget and Actual with the Board. He noted that the transfers of all expenditures of $25K or more must be approved and sent to Town Meeting. Mr. Westerson noted that the list did not include “Catastrophic Illness” to which Mr. Fish added it to his recommendations.
Motion: To approve the budget transfers from surplus all over $25K to town meeting of November 28, 2011. They are as follows: KHCAC; Police Department, Water Pollution Control, Labor & Personnel, Engineering, Legal & Catastrophic Illlness.
Moved: C. Fortuna Second: G. Westerson
Discussion: None
Approved: 6-0-0
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Motion: Move for approval of the transfers of under $25K as indicated in the variance column of the General Fund expenditures.
Moved: C. Fortuna Second: L. Sparaco
Discussion: None
Approved: 6-0-0
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Motion: To move Mr. Fish’s Proposal to close out the completed capital projects and send to Town Meeting on November 28, 2011.
Moved: G. Westerson Second: L. Sparaco
Discussion: None
Approved: 6-0-0
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At this time, Mr. Sparaco noted that it might be valuable to the BOF to see what they want to do with the remaining capital outlay sinking funds. Mr. Pace noted that these funds would need to have management oversight. Mr. Pace said there should be a review process in place and a monthly report which should be reviewed.
Selectman Report:
Mr. Pace discussed the “Community Renewal Team” a profile of services by town for people in need. He reported that in 2008 there were 162 residents served; 2009 there were 268 residents served; and 2010 there were 319 residents served. It is now the middle class that is seeking help.
Mr. Pace handed a newspaper article out to the Board. Obama’s jobs bill would hurt municipal bond sales by taxing municipal bond income on investors who have income over 250k.
Re the ambulance building: Mr. Bonin will be meeting with architect for ambulance building addition. Mr. Pace reported that the Town will supply the labor and put in the Septic System.
Mr. Pace reported that he has already put together a draft of next year’s budget. He can bring in the town government side flat or less. He noted that we need to be extremely conservative.
Mr. Fortuna thanked Mr. Pace.
At this time, Chairman Fortuna announced that it was a pleasure to serve on the Board of Finance for the past 10 years. He thanked Mr. Sparaco and noted that it was truly a pleasure to work with him. He thanked Selectman Pace and Treasurer Fish and noted that it was a pleasure working with them and thanked them for their service.
Motion: To adjourn at 8:22 p.m.
Moved: G. Westerson Second: D. LaMay
Discussion: None
Approved: 6-0-0
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Respectfully Submitted,
Gerri Lewis, Clerk
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