302 Main Street Old Saybrook, Connecticut 06475-1741 BOARD OF FINANCE MINUTES REGULAR MEETING NOVEMBER 17, 2015 7:00 P.M. First Floor Conference Room Town Hall |
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BOF Attendant Members Absent Members
David LaMay, Chairman Breck Lindley
Brad Thorpe, V. Chairman Gregory Gernhardt
Tom Stevenson
John O’Brien
Barry O’Nell
In Attendance
Carl Fortuna, First Selectman
Carol Conklin, Selectman
Bob Fish, Treasurer
Barry Maynard, Tax Collector
Jan Peruccio, Superintendant of Schools
Julie Pendleton, Director of Finance & Facilities
Mr. LaMay called the meeting to order at 7:00 p.m.
Mr. LaMay led in the pledge.
III. ELECTION OF OFFICERS
A motion to elect David LaMay as Chairman was made by Brad Thorpe, seconded by Tom Stevenson and was so VOTED unanimously.
A motion to elect Brad Thorpe as Vice Chairman was made by Tom Stevenson, seconded by Mr. O’Nell. Discussion: Mr. Stevenson commented that Mr. Thorpe did a great job in the absence of the clerk. Motion passed unanimously.
IV. MINUTES 10/6/15 and 10/20/15
A motion to approve the minutes of October 6, 2015 was made by Mr. Thorpe, seconded by Mr. O’Nell and was so VOTED unanimously.
A motion to approve the minutes of October 20, 2015 was made by Mr. Thorpe, seconded by Mr. LaMay and was so VOTED unanimously.
V. BOARD OF EDUCATION REPORT
Ms. Peruccio gave an update of the building projects as follows:
- Since Walk-thru TTT is 99% complete
- Goodwin School windows being done in phases thru the Christmas holidays
- All HVAC units are installed
- Middle School roof; waiting for sign-off; received first progress payment; last progress payment will be in early spring
- Mr. O’Brien inquired as to where the money would go; answer is to the General Fund
- Mr. Thorpe inquired re a cost savings on fuel; too early to tell; age of boilers is 40 yrs. old
- Mr. Stevenson asked if solar was looked into. Yes, there is a 20 yr. commitment for panels, so not at this time
- Mr. O’Brien asked if all capital expenditures were complete for 2015. Answer…capital maintenance and programs are complete. Now working on 5 year capital plan
- May be savings on insurance and personnel
- Special Ed not doing as well as expected – looking at transportation
- 2016-17 budget: Staff brings to Principal and Principal then brings it to Jan and Julie
- Doing survey on enrollment for next year
- Sustained services budget for 2016-17; same as current year
- Budget & fiscal sub-committee will meet before the holidays
- Suggested combined meeting with Board of Finance
Mr. LaMay thanked Ms. Peruccio and Ms. Pendleton.
VI. PENSION BOARD REPORT
Dr. Suzanne Taylor, Chairman of the Pension Board and Mr. Raymond Muratori board member were at the meeting. Dr. Taylor explained to the board of finance that they were seeking ways to improve the Pension Plan. She went on to say that the plan has not changed in seven (7) years.
It was noted that the employee contribution is 5%.
Dr. Taylor handed out the Milliman proposal to the board. Mr. Muratori explained that the proposal was to assist the Pension Board and Town in studying the long-term costs and benefits associated with the current retirement program and potential alternative programs. This project’s cost for the study is $10K.
Mr. Fortuna noted the town looked at Defined Benefit plan and perhaps increase the town’s contribution. Ms. Lindley asked Mr. Fortuna to explain DB Plan.
Mr. O’Brien inquired about the town going to the Union to see if they might be interested in becoming involved. Dr. Taylor reported that they have started to do that with the Fire Department.
Dr. Taylor noted that employees are vested after 10 years. The study will help the town decide if the current plan is efficient. It will address overtime pay; defined contribution plan, etc.
After a short discussion, the board made the following motion:
A motion to appropriate $10K to do the study was made by Mr. Thorpe, seconded by Ms. Lindley.
Discussion: Where will the money come from? Mr. Fortuna noted that it would be taken from the undesignated fund balance.
An amended motion to appropriate $10K from the undesignated fund balance, for the pension board to do a study with Milliman on the long-term costs and benefits associated with the current retirement program and potential alternative programs, seconded by Ms. Lindley was so VOTED unanimously.
Mr. LaMay thanked Dr. Taylor and Mr. Muratori.
VII. TREASURER REPORT Mr. Fish noted that the general government expenditures
are high as a percentage of the total because of early one-time requirements, including during October an additional million-dollar bond payment and our annual contribution to the Town’s pension fund.
Tax collections are running ahead of last year, in which we finished with a revenue surplus. As usual, he noted, revenue from the State of CT is low relative to the budget early in the year. Local revenues continue to be strong. Activities seem normal.
Mr. Fish noted that periodic review of the General Fund Balance Policy is prudent when trying to increase the fund balance. He went over the purpose, target level of fund balance, and methodology to achieve target level of fund balance of the policy. After a short discussion the following motion was made:
A motion to adopt the General Fund Balance Policy was made by Ms. Lindley, seconded by Mr. O’Nell and it was so VOTED unanimously.
Mr. Fish discussed the difference between the budget funded by town funds and the non budget accounts.
Mr. Stevenson suggested that when departments or commissions are requested to come before the board of finance to discuss the budget, that not just the “head” of the department/commission be invited.
Mr. LaMay thanked Mr. Fish.
VIII. FINANCE DIRECTOR REPORT – Mr. Fortuna introduced Lee Ann Palladino and passed out her resume. He noted that she is the interim Finance Director, assisting Lisa while she is out.
IX. SELECTMAN REPORT
Mr. Fortuna welcomed the newest selectman, Carol Conklin. He touched on the following:
- Janet Vinciguerra and Lucia Parachin took an accounting course online
- Results of the Making Places Grant; BAR Grant
- Building Inspector reports 68 solar systems in town; 95 permits issued;
- Trailblazers will be going in at 75 Main Street
- We have the 15th lowest mill rate in Connecticut
- Re State Budget: Pequot Fund, reduction. We receive about $15K
- Fire Fighters presumption bill: town would be responsible for the WC insurance
- Departments will receive budget memo early December
Mr. LaMay inquired about the truck for Building Inspector. Mr. O’Brien inquired about town vehicles. Are other than the insured drivers covered by the town insurance as well? It was noted that Don Dobson, Don Lucas, WPCA and Y&FS have town vehicles. It was noted that Police and Fire vehicles passengers are covered.
At this time, Mr. Fortuna inquired if the board of finance had remembered that $4,796 was added to Youth & Family Services budget, and noted that it never was done. He reported that it is now going to be added. The board agreed.
At this time Mr. Fortuna discussed the item of the Harbor Management Fund. He asked the board to act upon a recommendation from the BOS to the BOF an appropriation of $6500 from the Harbor Management Fund to pay Connecticut River Dock & Dredge for pulling moorings in the Cove.
A motion by Mr. Thorpe to appropriate $6,500 from the Harbor Management Fund to pay Connecticut River Dock & Dredge for pulling moorings, seconded by Mr. O’Nell was so VOTED unanimously.
X. PUBLIC COMMENT
It was asked if the off budget accounts are public information. Answer is Yes.
At this time, Mr. Stevenson wanted to thank the ladies in the Accounting Department for taking the accounting course.
XI. COMMENTS FROM THE CHAIR~
Mr. LaMay noted that the Annual Town Meeting was November 23rd at the Middle School.
The Liaisons are as follows:
Ms. Lindley and Mr. Thorpe- Police Commission
Mr. LaMay and Mr. Stevenson – Board of Education
Mr. O’Brien brought up questions that he had at the September meeting. One of the questions was, can any department spend money on items that are not budgeted without board of finance approval regardless of the amount involved? Mr. Fortuna replied yes, if it is related to the department. He noted that “things come up” and sometimes it is necessary.
XII. ADJOURNMENT
Motion to adjourn was made by Mr. Thorpe and seconded by Mr. O’Brien at 9:16 p.m.
THESE MINUTES ARE RECORDED IN THEIR ENTIRETY AND ARE ON CD IN THE TOWN CLERK’S OFFICE.
Submitted:
Gerri Lewis
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