MINUTES
BOARD OF FINANCE
FEBRUARY 15, 2005
A REGULAR MEETING of the Board of Finance was held on Tuesday, February 15, 2005 in the Council Chambers.
Those in attendance included Mayor Owen J. Quinn, Jr., members of the Board of Finance Daniel Farley, James Zeller, James Nichol, and Bruce Cornish, Corp. Counsel Albert Vasko, Comptroller Alice Proulx, and Director of Elderly Services Nancy Gyurko. Board of Finance members Joseph Nader & Roger Dickinson were absent.
Mayor Quinn called the meeting to order at 4:00 p.m.
MINUTES #010
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to approve the minutes of the regular meeting held January 4, 2005.
OPEN TO PUBLIC #020
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to open the meeting to the public. There was no public participation.
PRESENTATION: AUDIT #040
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board allowed William Sawicki from Sawicki & Lombardozzi, LLC, to make a presentation on the city’s audit.
For the complete presentation, please refer to Tape # 219.
Mr. Sawicki reported one federal finding, in terms of Community Development Block Grants from Small Cities. The balances for fifteen conventional loans were not recorded within the respective city funds from where the payments were made. Additionally, the city had one hundred deferred type loans whose overall maintenance was lacking. Individual files were maintained for these loans but no overall financial control mechanism was in place to track the forgiveness or repayment activity.
Mr. Sawicki’s recommendation was that the loans should be under control mechanisms to monitor the financial activity within them.
Correction: The city created a subsidiary ledger of all outstanding deferred loans receivable as of June 30, 2004. The ledger will be reviewed and updated by the Treasurer’s Office and the Comptroller’s Office monthly. All other loans receivable will be recorded and monitored in a subsidiary ledger as well. It should be noted that the city does have a certain measure of protection in that liens are filed on the properties attached to the aforementioned loans.
One finding was also reported under state financial assistance. Basically, there was no contract in place for the provider used in the School Readiness and Child Care in Severe Need Schools for the audited year.
Correction: A draft School Readiness contract was received from the local School Readiness Council on 1/5/05. It will be reviewed by the appropriate Board of Education Administration prior to its acceptance and approval. This contract will be reviewed annually and changes made accordingly.
Mr. Sawicki stated that his audit firm supplied the city with a two page Management Letter which pertains to findings and comments that did not rise to the level of being included in the bound copy of the audit. They are suggestions of improvements that should be considered. His firm recommended that the city consider centralizing its non-education related grant functions. The city’s Finance Department should be supplied with grant award letters, significant reporting documentation, and any other financial information relating to grant activity within the city.
Mr. Sawicki forewarned the city that beginning July 1, 2008, the Governmental Accounting Standards Board will require cities having more than 100 employees to include in their financial statements the total value of liabilities created by retirees’ benefits. This will require the help of an actuary.
Mayor Quinn and the board thanked Mr. Sawicki for his presentation.
CARDINAL ENG. #980
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to approve the payment of $5,470.00 from the Sanitary Sewer Capital Improvement Fund #490 to Cardinal Engineering Assoc., Inc. for engineering services performed on the East Main Street/New Harwinton Road Sanitary Sewer Improvements.
TRANSFER FUNDS #990
On a motion by Mr. Cornish, seconded by Mr. Zeller, a discussion took place in regard to the request to transfer funds not to exceed $50,000.00 from the East Pearl Street Wall Construction line item #0010.0031.5816.0011 to the Cook Brook Stabilization Project line item #0010.0031.5816.0008.
Mr. Farley inquired whether the request would still be appropriate since he had recently heard that the East Pearl Street wall had collapsed.
Mayor Quinn made an attempt to reach the City Engineer in order to obtain answers to their questions. (Please refer to Tape #2, #001 for the vote.)
TRAFFIC SIGNAL: GREENWOODS AND WINSTED ROADS #1090
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to fund approximately $7,000.00 from Contingency for a traffic signal at the intersection of Greenwoods Road and Winsted Road.
REFUND: LINDSLEY COLLIGAN #1160
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to authorize a refund of $52.00 from Contingency to Lindsley Colligan for a building permit and a CO for a deck that was never built.
GORDON, MUIR & FOLEY #1170
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to authorize the payment of $1,170.00 from Contingency to Gordon, Muir & Foley, LLP for professional services rendered in the Southwest School matter.
NEW VEHICLE: ELDERLY SERVICES #1190
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to authorize the use of $8,354.00 from the city’s Vehicle Replacement Contingency Account to purchase a new Ford van with wheelchair lift from the Braun Corporation for the Elderly Services Department, contingent upon the City Council’s approval. The request is 20% of a $41,770.00 matching grant from the State DOT.
Mrs. Gyurko stated that Elderly Services will be selling a 1991 vehicle in the near future at a city auction and indicated that the proceeds could go back into the Vehicle Contingency account.
TRANSFER OF FUNDS # 001 TAPE #2
The board returned to the request to transfer funds not to exceed $50,000.00 from the East Pearl Street Wall Construction line item #0010.0031.5816.0011 to the Cook Brook Stabilization Project line item #0010.0031.5816.0008.
Because the wall had collapsed after the matter had been brought before the Council, Mr. Fabbri was asked if the request was still appropriate. Mr. Fabbri indicated that enough funds were available for the East Pearl Street Wall project and that the Board of Finance should move forward with the request. The board voted unanimously to transfer funds not to exceed $50,000.00 from the East Pearl Street Wall Construction line item #0010.0031.5816.0011 to the Cook Brook Stabilization Project line item #0010.0031.5816.0008.
BUS: MAYOR & MEMBERS #160
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to consider business presented by Mayor Quinn and members of the Board of Finance.
Mr. Nichol indicated that the city had many options to save money on insurance.
Ms. Proulx stated that the city reviews insurance on a yearly basis to see if it makes sense to change from the present insurance plan to a self insurance plan. In terms of health insurance benefits and pensions, she and Mayor Quinn have been discussing the fact that contracts need to be reviewed and discussed with the Unions.
Mayor Quinn said the city has an Insurance Committee made up of insurance leaders who review and analyze the insurance needs of the city on a yearly basis.
Mayor Quinn further stated that health insurance coverage is negotiated and included as part of Wage & Hour Benefits. Bargaining insurance benefits are complicated by the fact that different contracts expire at different times.
Mr. Zeller inquired whether the same people who had managed the pension funds in the past were still the same ones managing them now, since Fleet Bank had been taken over by Bank of America. He asked if Mr. Friday was the contact person for questions arising on the Pension Funds and whether Hooker & Holcombe and/or Fleet had ever made a presentation before the Board of Finance on how the funds were doing.
Ms. Proulx stated that Hooker & Holcombe are scheduled to appear before the City’s Trustees and the Police & Firemens’ Trustees during their meeting on March 7 and 9, respectively, and the Board of Finance are welcomed to attend. Specific questions concerning the funds should be directed to Mr. Friday in the Treasurer’s Office.
Mr. Zeller thought it would be nice to make certain that the money currently invested in these plans was working as hard as it possibly could. He thought the pensions should be one of the most pressing issues the Board of Finance should address.
Mayor Quinn indicated that forming a sub committee to review the pension funds might be a great idea.
Mr. Cornish said he was curious about the impact of the spending control order that Mayor Quinn had imposed on department heads and whether or not it was playing out the way he had anticipated.
Mayor Quinn indicated that the spending freeze has lead to some savings, however the winter has created some overtime issues. He informed the board that he changed the title of the Supervisor of Equipment Maintenance to Fleet Manager and that person now reports to the Mayor instead of Public Works. The reason behind the change was that Mr. Michaud was not only servicing vehicles from the Street Department, but also those from the Fire Department, the Police Department, and the Board of Education, and it made more sense to change his title and have him report directly to the Mayor.
Some department heads are honoring the freeze, while others struggle with a zero based budget for the third year in a row. Any shortfalls or imbalances in the budget, either on the city or the Board of Education side, will eventually fall on the Board of Finance’s plate.
Mr. Cornish reminded the board that the Board of Education has suggested re-allocating some of their capital budget from the current year in order to fill a void and that may have an impact on their Five-Year Capital Plan.
Mayor Quinn informed the board that water problems have occurred at Southeast School. Because the school became city property when it was closed, the problem is a city liability. Mr. Rollett is in the process of obtaining estimates. The city will have to determine what to do with the building in the future.
Mayor Quinn reviewed how the consolidation of the Accounts Payable and Payroll modules have taken place between the city and the Board of Education. His next step is to meet with the new Superintendent of Schools and determine whether the system is being used efficiently.
ADJOURNMENT #1460
On a motion by Mr. Cornish, seconded by Mr. Zeller, and the board voted unanimously to adjourn at 5:30 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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