Mayor Pelkey called the meeting to order at approximately 4:35 p.m.
Members Present
Janice Favreau, Town Council
Matthew Galligan, Town Manager
Michael Gantick,Director of Public Works)
Patrick Hankard, Dir. Of Facility Services, Board of Education
Donna McKenty, Business Manager, Board of Education
(Chairperson ) John Pelkey, Mayor, Town Council
(Vice Chairperson) Janice Snyder, Board of Education
Members Absent
Dr. Kate Carter, Superintendent of Schools
Lisa Maneeley, Chairperson, Board of Education
Kevin McCann, Town Council
Craig Zimmerman, Board of Education
Guests Present
Scott Roberts, Director Information Technology
Raymond Favreau, Director of Recreation
- Approval of Minutes of Previous Meeting:
A motion to accept the December 15, 2010 minutes of the Capital Projects Committee Meeting was made by Mr. Patrick Hankard; seconded by Ms. Janice Snyder; and was unanimously approved.
Automatic Funding of Capital Projects
Mayor Pelkey opened discussion on Automatic Funding of Capital Projects. He stated he would like to work with the Capital Projects Committee to involve their suggestions and ideas on making it easier to get money into Capital Projects. We currently have revenue coming in to the Town from different areas such as new taxes from new retail, industrial or commercial businesses, Board of Education and Town budget surpluses, etc. New revenue is being generated from these areas. This money is currently being placed into Fund Balance and could be used to start a reserve fund.
For example, Connecticut Light and Power built a large facility on Barber Hill Road. This generated $878,000 in new taxes that year. A portion of that revenue could be put into a Capital Reserve Fund.
The 2010 Grand List (attached as Exhibit A) was distributed along with a draft of Capital Stabilization Plan (attached as Exhibit B) outlining the revenue that could be placed in to a reserve fund over a period of years.
Mayor Pelkey suggested we adopt an ordinance to incorporate a method of funding and a method of expenditure for reserve funds in conjunction with the Capital Projects Budget. He stated the key areas the Committee would need to agree on would be how to predetermine which projects are considered Capital Projects, how to automatically build the fund and how to distribute the funds. Withdrawal of the funds would also need to be a rule-based item.
The Committee was advised to keep the Health Care and Pension Reserve Funds needs in mind prior to adding additional reserve funds.
Town Manager Galligan will provide a written plan of recommendation from our Financial Advisor so that the Committee can learn more about how the Reserve Fund works. It was suggested that Town Manager Galligan also produce some samples of how other towns designed the fund. After reviewing this it was suggested the Committee set up a series of meetings to work on this new Capital Projects Reserve Fund and get it ready to submit to Council. The Committee agreed that this was the way in which they will move forward.
Members of the Committee mentioned the importance of Town Council placing trust in the Committee in terms of projects that need to be done. It was suggested that the Committee now present projects to the council in plenty of time for the Council to review them so as not to delay the project.
5. New Business
None
6. Old Business
None
7. Adjournment
Mr. Gantick made a motion to adjourn at 5:55 p.m.; Ms. Favreau seconded that motion;
and the motion was unanimously approved.
Respectfully submitted,
_______________________
Darlene Lehofer
Recording Secretary
Attachments:
Exhibit A 2010 Grand List
Exhibit B Capital Stabilization Plan
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