Meeting Minutes
Minutes Accepted and filed with the Town Clerk on 2/19/13 by a vote of 3-0-2
(Vice Chair Hebert & Selectman Hersom abstain)
7:00 p.m. – February 5, 2013
Sutton Town Hall, Selectmen’s Meeting Room
Members in Attendance:
Chairman Michael Chizy, Selectmen, Ken Stuart and David Hall
(Vice-Chair John Hebert & Selectman Richard Hersom absent)
Also in Attendance:
Town Administrator James Smith & Debbie Jacques, secretary
Chairman Chizy calls the meeting to order at 7:00 pm followed by the Pledge of Allegiance.
No comments under Public Forum
Selectman Stuart motions to accept as presented minutes from the 1/22/2013 BOS meeting, Selectman Hall seconds passes 3-0
NGrid Public Hearing: Clerk of the BOS Ken Stuart reads the notice as published in the T&G on January 16, 2013. TA Smith informs the board that public safety and the highway department has no issues. Mr. Morales, representative for NGrid is present to answer any questions. Mr. Morales states this job is to supply electricity to 2 homes on Dean Farm Road. Hearing no questions or comments from the board, Chairman Chizy opens it up for any resident questions, seeing none Chairman Chizy moves to close the public hearing, Selectman Stuart seconds passes 3-0. Selectman Stuart motions to authorize permission to National Grid to install 250 feet of underground wire in conduit pole #18 at the corner of Lincoln and Dean Farm Road, to serve a pad mount transformer for service to two lots on Dean Farm Road in Sutton as
shown on National Grid plan #14237153, Selectman Hall seconds passes 3-0
Melanson & Heath FY12 Audit presentation: Alan Goodwin is present for Melanson & Heath. Alan begins by saying he was present during the field work at this location, over all the audit went well. Goodwin stated that the chief operating fund and general fund broke even in FY2012. The 2 major significant events include the OPEB trust fund and the continuation of the Middle School High School construction project. In the Management Letter to the BOS, some of the areas discussed were: the town establish formal sewer billing procedures, institute departmental receipt policies & procedures, student activity fund audits, evaluate indirect costs, develop a written policy on risk assessment and prepare to implement GASB 68 which requires the town show under the statement of net assets the unfunded pension liability.
Town Accountant Tim Harrison thanks Melanson & Heath on doing a good job with the audit; they were organized and stayed on schedule. It is a pleasure working with them. Selectman Stuart thanks Alan for his presentation, Ken says the audit tells how the town is from a financial standpoint we are in good shape and credits Tim Harrison and Jim Smith for leading us in the right direction. Selectman Hall asks for clarification on the expenses and revenues and changes in fund net assets under the enterprise funds as well as the breakdown over 4 years of the OPEB cost. Chairman Chizy thanks Melanson & Heath for a good job; Mike says it shows how well a job the financial team does. Mike thanks Jim Smith and Tim Harrison.
Review existing town financial policies: TA Smith tells the BOS there was a ratings call held on Tuesday, January 29, 2013 with Standard and Poor’s as the town has to borrow the last 5 million dollars for the school project. This call went very well; the town received a AA Stable score which is very good. S&P were impressed that the town of Sutton had written policies in place on financial matters. TA Smith would like the current BOS to review these policies to see if there are any areas they would like changed. Having these written policies was an asset to our town with this last ratings conference call. The financial policies under review are the Free Cash policy which is the cash generated by yearend revenues in excess of budget projections and year end expenditures less than appropriation. These funds
are certified by DOR and then go into the stabilization fund. The Stabilization fund is where cash reserves are held which can help with credit ratings. This policy has the town working towards keeping 8% of the total projected general fund operating revenues for the next fiscal year in this fund as an emergency reserve. The other policy under review is the Debt Management Policy. This allows for consistency in the towns capital assets. The debt policy issues guidelines governing the use of long term debt and ensures repayment of all debt issued. Town Accountant Tim Harrison agrees that it is good practice to review every few years as the town’s situation and needs may change. Selectman Stuart says great news about the town rating. The Stabilization Fund and Free Cash Policy are 2 great things to maintain. It is great not to tap into these funds to balance the budget, the key is to let them grow, kudos to both Jim and Tim. Selectman Hall says not using free cash as
funding is hard to do but it has been successful, Dave asks where the 8% figure came from in the Stabilization account. TA Smith replies it was a figure he and Tim agreed on. Tim Harrison states the rule of thumb is 5-10% of the operating budget. Chairman Chizy says it is nice to sit and listen to good reports of the town’s financial situation. Jim and Tim do a heck of a job.
Town Administrators Update:
- S&P Conference call held on January 29, 2013. This is for borrowing the remaining 5 million for the school project. These notes will be sold next week and be presented to the BOS at the February 19th meeting for signatures.
- RFP for solar panels on 4 town owned buildings (sr center, manchug fire station, sewer dept and wilks fire station) will be going out to bid. The 1st step is a feasibility study, the 2nd step is design and the 3rd is construction.
Virtual Net Metering non binding agreement: TA Smith has signed a non binding agreement with Prince Lobel to purchase 950,000 kw at a price of 30% off of the Ngrid price. The BOS will have to approve the contract at appropriate time.
* Trudy Mongeau recently passed away. Trudy worked at the Manchaug Boat ramp and will be missed.
Announcements: N/A
Round Table & Correspondence: N/A
Selectman Stuart motions to adjourn, Selectman Hall seconds passes 3-0 Meeting adjourned 7:35 pm
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