302 Main Street Old Saybrook, Connecticut 06475-1741
BOARD OF FINANCE MINUTES REGULAR MEETING JUNE 7, 2016 at 7:00 P.M. FIRST FLOOR CONFERENCE ROOM TOWN HALL |
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BOF Attendant Members Absent Members
David LaMay, Chairman
Brad Thorpe, Vice Chairman
Breck Lindley
Tom Stevenson
John O’Brien
Barry O’Nell
Carol Rzasa
In Attendance
Carl Fortuna, First Selectman
Larry Hayden, Director IT
Lee Ann Palladino, Finance Director
Bob Fish, Treasurer
Barry Maynard, Tax Collector
Michael Spera, Chief of Police
Call to order
Mr. LaMay called the meeting to order at 7:00 PM
Pledge of Allegiance
Mr. LaMay led the Pledge of Allegiance.
Minutes:
A motion to approve the minutes of May 17, 2016 was made by Mr. Thorpe, seconded by Mr.
O’Brien and motion passed unanimously.
Suspense Report
Mr. Maynard, Tax Collector handed out the Suspense Report to the board. After he discussed his report and answered questions from the board the following motion was made:
A motion to approve the Suspense List for the Grand List year 2010 in the amount of $22,379.13 was made by Mr. Thorpe, seconded by Ms. Rzasa and motion passed unanimously.
Treasurer Report
Treasurer Fish discussed his report before the board. He reported the general fund revenues through May 31, 2016, noting total property taxes to date $41,464,028.82. The projected total property taxes $ 41,511,383. State Revenue this year to date $ 1,076,260.01; projected total $1,122,977. Local revenue to date $ 1,362,173.55; projected total $ 1,534,300. Total General Fund Revenue: $ 43,902,462.38; projected total $ 44,168,660.
Mr. Fish projected that there would be a surplus of approximately $400K.
Mr. LaMay thanked Mr. Fish.
Finance Director
Ms. Palladino presented the budget performance for Fiscal Year 2016 (“FY16”) through May 31, 2016. She stated that the FY16 budget currently stands at $15,242,312 up $78,795 due to appropriations made by the Board of Finance throughout the fiscal year. She specifically discussed an appropriation of $21,000 for the consulting service for an accounting software system noting that it was recently added to the financial reports, but was appropriated in March 2015, last fiscal year.
The municipal reserve fund increased $5,000 from last month now $784,670 due to the transfer approved at the last Board of Finance meeting for the fire department. Capital expenditures to date totaled $324,202 or 72% of the yearly budget. Ms. Palladino discussed the budget line items that had exceeded their full year’s budget allocation. The line items were Contingency, KHCAC, Traffic and Street Lights, and Zoning Commission. The Engineering budget item will likely go over prior to the end of the year as it is close to full budget amount.
Ms. Palladino noted that the rebate for the JP Morgan P-card was $12,739 for this fiscal year.
Ms. Palladino presented the First Selectman’s memo that memorialized the FY17 revenues and discussed that due to the fact that the revenues from the State were unknown at the time the budget was approved, funds from the unassigned general fund may need to be used in FY17. The use of the unassigned general fund balance will ultimately be determined by the actual expenses and revenues booked during FY17.
Ms. Palladino then presented a recommendation to write off an outstanding negative balance of $16,217.50 in the 252 account Emergency Services Unit. The fund has had a negative balance for a few fiscal years and no other funds will be received to cover the expenses.
A discussion ensued on how to remedy the long-term, negative balance within the 730 administrative exchange, a multi-use account used to clear sources and uses of funds associated with insurance claims, fuel exchange and other types of clearing activities. This account had a prolonged negative balance that stretched back many fiscal years. The recommended remedy is to balance the account to the best ability of documented transactions given the passage of time. New accounts will be opened in FY17 and the negative balance will be written off.
A motion was made to approve the write off of the negative balance of $16,217.50 in the Emergency Services Unit account was made by Mr. Thorpe, seconded by Mr. O’Brien and motion passed unanimously.
Finally, a recommendation was presented on the budget impact of the dispatcher’s agreement due to the conclusion and ratification of the collective bargaining agreement. The budget will be impacted due to negotiated agreements in three areas: increased rates of pay, paid holidays and paid vacation. The increased costs for FY17 include pay increases of $8,133; vacation payout of $1,288, and 50% of potential vacation payouts in the amount of $7,010. Retro pay projected in the range of $6,500 to $8,000 will be charged in FY16, no budget adjustments will be made to FY16
A motion was made by Mr. Thorpe, to add $16,431 to the various FY17 Emergency Communications budget line items, seconded by Mr. O’Brien and motion passed unanimously.
Mr. LaMay thanked Ms. Palladino.
Selectman Report
Mr. Fortuna presented a memo to the board which discussed the adoption of the Fiscal Year 17 budget and the laying of the tax which occurred at the Board of Finance meeting, held May 10, 2016 immediately following the budget referendum. The mill rate was set at 19.26 and the use of $285K of the undesignated general fund balance was incorporated into the revenue budget for FY 17 to balance the budget for the upcoming fiscal year. The total adopted budget expense is $44,532,446. The budget revenues that will cover these expenses are as follows:
- Mill rate of 19.26.
- Local revenues for FY17 are $1,213,100.
- Other revenues (telecommunication tax and collection of pat taxes) total $260K.
- State Revenues, which were unknown at the time the Town’s budget was approved, were projected to total $695,256.
- Use of the unassigned general fund balance in the amount of $285K.
- Total revenues equate to $44,532,446 to meet budgeted expenses.
Mr. Fortuna noted that the Town and Board of Education are committed to carefully monitor expenses and cut expenses where opportunities exist.
Mr. LaMay thanked Mr. Fortuna.
At this time, Mr. Evangelisti talked about the WPCA.
This meeting in its entirety was recorded on CD in Town Clerk’s office.
A motion to adjourn was made by Mr. Thorpe, seconded by Ms. Lindley at 8:50 p.m. and so VOTED unanimously.
Submitted, Gerri Lewis
Transcribed from notes
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