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Town Council Work Session Minutes 11/1/2010
TOWN OF SOUTH WINDSOR
WORK SESSION MINUTES

TOWN COUNCIL                                                   MONDAY, NOVEMBER 1, 2010
COUNCIL CHAMBERS                                                               TIME:  7:00 P.M.


1.      Call Meeting to Order

Mayor Pelkey called the meeting to order at 7:06 p.m.

2.      Roll Call

Members Present:        Mayor John Pelkey
        Councillor Gary Bazzano
        Councillor Tom Delnicki
        Councillor Janice Favreau
        Councillor Kathryn Hale (arrived at 8:00 p.m.)
        Councillor Kevin McCann (arrived at 7:08 p.m.)
        Councillor Cary Prague
        Councillor Keith Yagaloff

Members Absent: Deputy Mayor Edward Havens

Also Present:           Matthew Galligan, Town Manager

3.      Public Participation

None

4.      Communications

None

5.      Town Manager’s Report

        None

6.      Items for Discussion

        A.      Reserve Policies

Mr. Galligan began discussions stating that the proposed reserve policies are something he would like the Town Council members to review and consider over a period of time.  Mr. Galligan then reviewed the Reserve Policies with the Town Council members, as shown in attached Exhibit A.  Mr. Galligan ended the discussion by saying he feels the Town should start reviewing these policies in order to get some sort of fiscal goals.  These Reserve Policies will help to not have spike in taxes or the elimination of services to residents.  

Answering questions from the Council, Mr. Galligan explained that eventually the Town could get rid of the Contingency fund that is budgeted for each year once these reserves are built up.  The Town Council would have to review these Reserve Funds

ITEM:

6.      A.      (Continued)

each year.  There may be times when the Town has a surplus and the Town may want to apply the surplus instead of applying a budgetary number to the Reserve Funds.  The Budget Stabilization Fund is the only reserve where money could be moved around to other Reserve Funds.  The Town presently has a Contingency Fund which is budgeted for each year.  The amount budgeted this year was 215,000 and those funds are used for items that have not been budgeted for.  

Councillor Prague felt that Reserve Funds is an excellent idea, makes a lot of sense and he fully supports this idea.  Councillor Prague then stated that he feels the Pension Meetings are very informative and also feels that the Pension Committee should meet on a monthly basis.

Councillor McCann stated that the Reserve Policy is a good but he is concerned that the amount being funded each year is too conservative because the Town will have substantial reductions in State funding and the Town needs to be ready.

Councillor Yagaloff felt that the Reserve Policies are important, but to try to fund those in this upcoming budget would create a lot of problems for the budget.  If the Town Council does this by Ordinance, the Town Council needs to be flexible in the short term because of the economy.  Councillor Yagaloff stated that he noticed WPCA is also looking at Reserve Policies and then asked for Mr. Galligan’s feedback because the way WPCA is approaching this in a different manner, they are looking to develop a reserve based upon the total cost of their infrastructure, not on operational expenses.  Mr. Galligan explained that the WPCA is starting fresh with their asset which is a new Plant and some of the buildings that the Town has date back to 1960, so the Town would have to use the replacement value which is $275,000,000.  To put a reserve policy on that amount would take up the Town’s entire budget.  The proposed Reserve Policies are structured to look at every day operating items that the Town goes through that are unforeseen and be able to sustain the budget as well as the services that are provided to the residents.

Councillor Yagaloff stated that he feels the reserve amounts are appropriate but he does not want the Town to be in a situation where a certain amount is promised to go into the reserves each year and then the next budget cycle have all of the funds taken out of those reserves in order to balance that next budget.  Mr. Galligan suggested that the Council could first do this by resolution to see how things work before creating an Ordinance.

Councillor Delnicki voiced his concern that the State will probably give substantially less to the Town and doing this by Ordinance could create a problem.  Mr. Galligan repeated that this could be done by resolution during the budget season instead of Ordinance.



ITEM:

6.      A.      (Continued)

Mayor Pelkey felt that creating reserves and long term planning is a good idea but is concerned how the Town would protect this money in those funds so it is used for the purpose it is intended to be used for.  Mayor Pelkey also felt that ongoing capital projects should be reviewed to see how some of those items can be taken care of as well.

Mr. Galligan requested that the Town Council members review these policies.  The Town Council also has the option of only doing one or two of these policies as well.

7.      Executive Session

At 7:39 p.m. Councillor Yagaloff made a motion to go into Executive Session to discuss the draft contract with the Ambulance Corp.  Councillor Bazzano seconded the motion; and it was approved, unanimously.

The following individuals went into Executive Session:  Mayor Pelkey, Councillor Bazzano, Councillor Delnicki, Councillor Favreau, Councillor Hale (arrived at 8:00 p.m.), Councillor McCann, Councillor Prague, Councillor Yagaloff, and Town Manager Matthew B. Galligan

At 8:00 p.m. Mayor Pelkey recessed the Work Session in order to call the Regular Meeting to order.  The Regular Meeting was recessed and the Work Session was reconvened.

At 8:08 p.m. Councillor Prague made a motion to adjourn Executive Session.  Councillor Bazzano seconded the motion; and it was approved, unanimously.

8.      Adjournment

At 8:09 p.m. Councillor Hale made a motion to adjourn the Work Session.  Councillor Favreau seconded the motion; and it was approved, unanimously.

Respectfully submitted,


                                                
Deborah W. Reid
Recording Secretary

Attachments:
        Reserve Policies – Exhibit A