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 TOWN OF OLD SAYBROOK
Board of Finance |
302 Main Street Old Saybrook, Connecticut 06475-1741 |
MINUTES AUGUST 2, 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
Sonny Whelen
Grant Westerson
David LaMay
Lee Sparaco
Barry O’Nell
John O’Brien
In Attendance
Michael Pace, First Selectman
Carol Manning, Selectman
Bob Fish, Treasurer
Larry Bonin, Director Public Works
Brad Thorpe, Board of Education
Gerri Lewis, Clerk
Public Comment: None
Chairman Fortuna asked for a motion on the June 21, 2011 minutes
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Motion: To approve the minutes of June 21, 2011 as presented:
Moved: C. Fortuna Second: L. Sparaco
Discussion: None
Approved: 5-0-2
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Board of Education: Mr. Fortuna called the board’s attention to the “Year End Status 2010-2011” report from Superintendent Mr. Onofrio and Ms. Pendleton, Director of Operations, Facilities & Finance. He asked if anyone had any questions. Hearing none, Mr. Fortuna called upon Mr. Pace.
Selectman’s Report: Mr. Pace noted that over the past years his bonding model as well as his debt model, pay as you go philosophy, has kept the town in good stead. Mr. Pace noted that the economy is on the brink, but that our town is solid and we have controlled debt. He also noted that the money lost at the federal level will have a trickle down effect on municipalities.
Selectman Pace reported that after 9 months of discussions and presentations by waste services vendors, the Board of Selectmen voted unanimously to approve a new 15 year contract with Connecticut Resources Recovery Authority (CRRA), fixing town trash disposal costs at $59.60 per ton for the first 4 years. The 5th year is $57.00 per ton and then flatlines. This cuts the town’s current disposal costs by $9.50 per ton, a 14% reduction.
The old CRRA contract’s requirement that the town pledge to guarantee repayment of bonds sold for trash to energy plant construction has also been eliminated. The current contract expires September 30, 2012.
The other two bids came from Covanta Energy, a firm that has trash-to-energy plants in Preston and Wallingford and the other from CRRA, the quasi-public authority with a trash to energy plant in Middletown known as the Mid-Conn plant. Covanta’s bid was to charge the town $60.75 per ton for the first year and $150 per load for recyclables. The bid included an escalator clause that would increase the town’s cost of disposal at a rate of about 2.5% per year.
Mr. Westerson inquired what the tonnage was budgeted for, to which Mr. Pace replied $3,800. Mr. LaMay noted that at the CRRA workshop there was a clause that diesel went up over $5.00 per gallon. It is noted that the consensus of the Board of Finance was that it was a good contract.
At this time, Mr. Pace brought out a visual on the General Government make-up:
- 35% Personnel (people delivery services);
- 11.5% Fixed Charges;
- 14.98% Supplies and Expenditures;
- 15.25% Contract Services; and
- Balance is Health Insurance; Bonding; and Retirement
Bonding Costs-Proposed Police Bldg:
Mr. Pace brought a visual of debt service for the proposed police building of 16K square feet at $5.5 million. This building would be 50% bigger than what the OSPD has now. It was suggested that the gas tanks be moved; no basement; and go to natural gas in place of oil. Mr. Pace reported that the new debt service would increase $250K per year.
Mr. Pace noted that the abandoned police building could perhaps be expandable. Another possibility was $7.5 million for a new police building and this would mean $600K new debt every year. He noted, due to the bad economy that there are other options such as continuing the lease where the PD is located presently.
Mr. Pace also noted that the town could replace all the Goodwin School windows on the north side in part or in whole. We could add an atrium and get solar credit as well, at a cost of $1.2 million. This could be paid in 4 years and not affect our operating budget.
Mr. Pace noted that he has money set aside for the reval which will be coming up as well.
Treasurer’s Report:
FY2010-2011 General Fund Budget Results
Mr. Fish went over the General Government Budget approved 7/1/2010. The grand total was $36,659,567. He then explained the mill rate calculation for the year ending June 30, 2011. He noted that it is calculated as follows: Mill Rate = 1000 x total revenue, other revenue, fund balance appropriation/(Grand List x Tax Collection Rate) = 13.9849 or 13.99.
Mr. Fish went over the monthly report ending June 30, 2011. The Revenues came in $50K less and he gave a breakdown of the expenses. Mr. Fish suggested that we should go back to any expenditures over $25K. These should go to town meeting. He noted that we did this 3 years ago.
Mr. Westerson brought up the personnel issue in the Treasurer’s Office.
Additionally, there was a long discussion regarding the contract settlement for heart and hypertension.
There was a long discussion of the near term needs of departments. Mr. O’Brien noted that if it was over $25K it should go to town meeting to which Mr. Fish agreed.
With regard to “Near-Term Needs” Mr. Fish passed out a list:
Town Hall Park & Rec Building Repair $10K; DEP Requirements for Transfer Station $100K; Revaluation $75K; Community Sign $20K; Computer Network Improvements $18K; Land Use Project Engineering $10K; Contract Settlement $14K; Unappropriated General Fund Balance $50K; Total: $297K.
Motion: To move the entire list of “Near-Term Needs” to town meeting.
Moved: C. Fortuna Second: G. Westerson
Discussion: It was noted by Mr. O’Brien that it was only necessary to move 2 items that were over $25,000.00.
Mr. Fortuna withdrew the motion
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Motion: To move 2 “Near-Term Needs” (over $25K) items to Town Meeting. A. The Transfer Station in the amount of $100K; and B. the Revaluation in the amount of $75K
Moved: C. Fortuna Second: J. O’Brien
Discussion: None
Approved: 7-0-0
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Motion: To carry over $10K for the Town Hall Park & Rec Building Repair.
Moved: L. Sparaco Second: C. Fortuna
Discussion: None
Approved: 7-0-0
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Motion: To carry over the Land Use Project Engineering, Contract Settlement and Computer Network Improvements, and Community sign for a total of $62K.
Moved: C. Fortuna Second: B. O’Nell
Discussion: None
Approved: 7-0-0
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Mr. Fish proposed to close out the completed capital projects: the Small Cities Septic Repair; KHCAC; and School Renovations project. He also proposed that a portion of the Small Cities Septic Repair monies (cash balance of $100,348.00), be transferred to a new account, WPCA Clean Water Program in the amount of $47,106.00; and the balance of $53,242.00 be transferred to the School Renovations Project which is ($59,206) in the red. He also proposed that the cash balance of the KHCAC project of $5,964.00 be transferred to the school renovations project.
Motion: To move Mr. Fish’s Proposal to close out the completed capital projects as stated above.
Moved: C. Fortuna Second: L. Sparaco
Discussion: Mr. LaMay noted the fact that in particular, the school renovation project was a $16 million dollar project from the ‘90’s.
Approved: 7-0-0
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At this time Mr. Fish asked the Board of Finance their take on his suggestion of putting the $75K from the Municipal Building Fund into the Capital Projects Fund. After a short discussion, it was decided that the Capital Outlay Sinking Fund (COSF) will become the “Municipal Reserve” fund.
Mr. Fish noted that as of this date, August 2, 2011, 50% of current taxes have been collected. He also noted that the last payment was made on the fire boat.
At this time, Mr. Fortuna asked if there were any additional questions or comments. Hearing none:
Motion: To adjourn at 8:56 p.m.
Moved: G. Westerson Second: D. LaMay
Discussion: None
Approved: 7-0-0
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Respectfully Submitted,
Gerri Lewis, Clerk
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