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BOF Minutes 11/18/2014
               302 Main Street  Old Saybrook, Connecticut 06475-1741
        
                                 BOARD OF FINANCE MINUTES
                                                   REGULAR   MEETING
                                            NOVEMBER 18, 2014 7:00 P.M.
                                               First  Floor Conference Room
BOF Attendant Members           Absent Members                  
David LaMay, Chairman                   
  Brad Thorpe, V. Chairman             
        Tom Stevenson                                      
         Barry O’Nell
        John O’Brien
        Breck Lindley
        Greg Gernhardt 

        In Attendance
         Carl Fortuna, First Selectman (7:30)
        Lisa Carver, Finance Director
        Bob Fish, Treasurer
        Jan Perruccio, Superintendent of Schools
        Julie Pendleton, Director of Operations, Facilities & Finance
        Michael Spera, Chief of Police
        Gerri Lewis, Clerk
 
  • CALL TO ORDER
Mr. LaMay called the meeting to order at 7:00 p.m.

  • PLEDGE OF ALLEGIANCE
Mr. LaMay led in the pledge.  

III.    MINUTES  10/21/2014
A motion by Ms. Lindley to approve the minutes of 10/21/14 was seconded by Mr. Thorpe.
Discussion:  Mr. Stevenson requested that the word, respectfully be deleted from item #IX, Public Comment.  Mr. Thorpe noted that his comments should be listed under item #IX.
Motion passed with one abstention.

IV.    PUBLIC COMMENT
Mr. Duhig commented that the motion made under item #IX was not legal.

V.     BOARD OF EDUCATION
Ms. Perruccio noted that two of the Old Saybrook principals received principal of the year awards.  She noted that fall sports went really well.        

Ms. Perruccio and Ms. Pendleton gave a budget update for the First quarter projection budget ending June 30, 2015, including all of the encumbrances for salaries, benefits, transportation, special education, and utilities.  They noted that it is anticipated that there are approximately $312,000 of unencumbered funds that will be needed to complete the school year.  They noted that it is expected that they will receive excess cost and agency placement money for this fiscal year of approximately $375,000.  They will be filing the first state reimbursement in December.  The second quarter projection will have more definitive grant funds expected.  It was noted that based on this projection, expected revenue and other purchases to be made, they are in a stable financial status at this time.  With regard to salaries, there is approximately $140,000 surplus in the salary line item currently.  Long term leaves may have an effect on this overall surplus by the end of the fiscal year.  In the health insurance account, it is projected that there will be $136,000 surplus due to five changes in status.  Between excess cost expenditures and the new transportation contract there is a $238,000 deficit in this account.  It is expected that some of this deficit will be off set by the excess cost grant.  The special education account has a $437,000 deficit with anticipated excess cost and agency placement reimbursement to offset a large portion of this deficit.

It was noted that the budget is balanced at this point, but further unanticipated expenses would create a negative impact on the budget and that the Board of Finance would be kept up to date.

Mr. O’Brien inquired regarding any additional transportation issues.  Mr. LaMay inquired if fuel was locked in.  He also inquired which grade had the most students.  Mr. Stevenson inquired regarding the possibility of exceeding the budget.  He also inquired of the 2 new employees from the OSPD.  Mr. Stevenson asked regarding the starting salaries.  Mr. Thorpe inquired if there was a cost savings with the 2 new hires.  He also inquired regarding a state audit.  Mr. LaMay inquired regarding contract negotiations.  Mr. O’Brien inquired about the football field.  Mr. O’Nell inquired about “cold weather” glue for the turf.  Mr. Gernhardt inquired about the root source issue.  Ms. Lindley inquired about additional costs.  Mr. Thorpe inquired if there was a chance of a lien.  Mr. O’Brien inquired regarding a legal line item.  Mr. LaMay inquired regarding the storage and warranty of the turf.  Mr. Gernhardt inquired regarding results of drainage/dirt.  Mr. LaMay commented that the tennis courts looked really great.

Ms. Perruccio noted that there would be a meeting of the “TTT” on Wednesday, December 3rd.  She also reported that the architect was getting specs together for roof and window replacements so that an RFP could go out in February, 2015.  Ms. Pendleton noted that there was funding for the windows under a conservation grant.  Mr. Thorpe inquired regarding the vents and skylights.

With regard to budgeting, Ms. Perruccio reported that she and Ms. Pendleton met with the principals and asked them to meet with their teachers to prioritize their needs.  It was noted that healthcare is offered to anyone working 30+ hours weekly.  Mr. Thorpe inquired regarding a high deductible plan and cost sharing.

Mr. LaMay thanked Ms. Perruccio and Ms. Pendleton.

VI.      TREASURER REPORT
Mr. Fish noted that the general government expenditures seemed normal, with the exception that transfers from the budget to non-budget funds have been done earlier than usual this year.  The negative balance shown for the 4295 line item is an error and is being corrected.

He noted that bonded indebtedness payments are on budget.  A bond payment of over one million dollars was made on October 31st, 2014.

Mr. Fish reported that taxes have come in well so far this year.  State payments are as expected.  An ECS payment of $163,169 was received.  He noted that local revenues continue to look higher than last year due to the success of the new mini golf course.  Mr. Fish noted that there is nothing in the data that indicates a problem.

Auditor/RFP:  We now have Kohn & Resnick.  Ms. Carver reported that she will put together a draft RFP for the Board of Finance in January for new auditors.  She noted that the level of service was not the same and maybe a better price may be out there.  Mr. Thorpe inquired about a fee and years in the contract.  Mr. Stevenson suggested having auditors in before the Board for questions.

Mr. LaMay thanked Mr. Fish.

VII.     FINANCE DIRECTOR REPORT
Ms. Carver spoke on the following:
  • Mini Golf revenues and expenses;
  • Bond pricing;
  • Moody’s rating of town AA2 – analyst very complimentary;
  • Meeting with Bruce Chadwick (bond counsel) next week;
  • WPCA notes changing from long term to short term;  closing out of Phase I;
  • WPCA:  2 payments: Benefit Assessment - $3.6 M
        General Obligation -  $1.9 M
  • Starting on budget work; going to department heads first week in December;
  • Health Insurance issue – July 1st: offer to employees working 30 hrs./wk; meeting with broker to inquire of penalty if not offered;
  • Vacancy Library;
  • Looking at Interim Library Director; Ass’t. Director retiring;
Mr. Thorpe suggested that perhaps school librarians may be of help.
  • Accounting software; ours out of date; need to strengthen internal controls; money needed to hire consultant;
Mr. LaMay inquired if state wants everyone to have universal accounting software program.  He inquired if a uniform chart of accounts would save money.  Mr. Fortuna noted that Mr. Fish has institutional knowledge and with this software, someone could transition easily to his position.  Mr. O’Nell inquired why board of education does not want to be a part of this system.  Mr. Gernhardt inquired regarding the cost of the new software what the savings would be.  He also inquired as to the timing of the implementation to the new software.  Mr. Stevenson inquired regarding the current operating and a possible upgrade.

Mr. LaMay asked for a motion at this time.

A motion for an appropriation to be made from undesignated fund balance to hire a consultant so that the town could apply for a $15K grant from state OPM for the purchase of new accounting software was made by Mr. Thorpe, seconded by Mr. Gernhardt and motion passed unanimously.

Mr. Stevenson inquired as to the time frame for use of the funds.

VIII.    SELECTMAN REPORT
Study Town Pension Plan Reform:  Mr. Fortuna asked the board for approval to provide funding for a broad study of the costs of our current pension plan as contrasted to other types of pension revisions that might or night not be less costly than our current system.  He noted that we now have a Defined Benefit Plan.  He explained that the cost for the study would be approximately $10K.  This plan would pertain to new hires and former employees would have the opportunity to opt in as well.   He noted that our current pension plan is underfunded, but well funded.  There will be an RFP.

Street Light Program:  Mr. Fortuna passed out a street light acquisition & LED conversion pro forma cost and savings analysis chart.  He noted that we would have to own the street lights and over time there would be an approximate savings of $115K.  He noted that he would like to have someone come in to speak to the board possibly in January.  He reported that the poles are now owned by CL&P, so we would need to buy the poles and arms for $150K.  Mr. Thorpe inquired if the lights could be solar powered.

  • North Main Street timeline out to 2016;
  • East Pointe turned down;
  • Senior Housing renovation complete;
  • Preserve funding meeting;  $220K payment in 2015;
  • Solar challenge;
Mr. Thorpe inquired regarding increases in labor in town budget as a whole.
  • Town Meeting November 24th; 7:00 p.m.; dedication to Velma Thomas;
  • Revising scope of PD bond issue.
Mr. LaMay thanked Mr. Fortuna.

IX. CHAIRMAN’S COMMENTS:      None

X.   ADJOURNMENT
Motion to adjourn was made by Mr. Stevenson and seconded by Mr. O’Brien at 9:02 p.m.

This meeting was recorded in its entirety and cd is on record in the Town Clerk’s Office.  

Submitted:
Gerri Lewis, Clerk