MINUTES
BOARD OF FINANCE
MARCH 6, 2007
A meeting of the Board of Finance, adjourned from February 20, 2007, was held on Tuesday, March 6, 2007 in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, members of the Board of Finance Daniel Farley, Bruce Cornish, Mark Bushka, and James Zeller, Comptroller Alice Proulx, Fleet Manager Michael Michaud, Tax Assessor Donna Patchen, Superintendent of the Board of Education Dr. Susan O’Brien, Chairman of the Board of Education Douglas O’Connell, and Business Manager Nancy Haynes.. Board of Finance member James Nichol and Corp. Counsel Ernestine Yuille Weaver were absent.
Mayor Bingham called the meeting to order at 4:00 p.m.
MINUTES
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted in the following manner;
Unanimously to accept the minutes of the special meeting held on January 9, 2007.
In favor of the minutes of January 22, 2007, with the exception of Mr. Farley who abstained, and,
In favor of the minutes of the regular meeting held on January 16, 2007, with the exception of Mr. Zeller who abstained.
OPEN TO THE PUBLIC
On a motion by Mr. Cornish, seconded by Mr. Bushka, the board voted unanimously to open the meeting to the public. There was no public participation.
PRESENTATION: BOE BUDGET DEFICIT
On a motion by Mr. Cornish, seconded by Mr. Farley, the board allowed Chairman of the Board of Education, Doug O’Connell to speak on the budget deficit being incurred by the Board of Education.
Mr. O’Connell stated that the Board of Education has out placed 95 students since February 13, 2007; 36 of which were placed by state agencies. Twenty four of those ninety five students were not anticipated when the Board of Education presented their budget last May. He reported that the Board of Education cannot anticipate any student moving into the school district, nor can they anticipate what their needs might be. It is the school board’s responsibility to provide their educational needs and pay for a large part of those expenses. The funds received from the state to help defray some of these unforseen expenses is called Excess Cost Revenue. The formula used to determine the state’s reimbursement is quite complex and does not provide for adequate funding.
Mr. O’Connell reported that the city is expected to receive between $350,000.00 to $500,000.00 in excess cost revenues this year. These funds are in excess of what the city projected in its 2006/2007 budget. That revenue is not included in the Board of Education’s calculations when arriving at the $700,000.00 deficit because the revenue comes to the city. Since it comes to the city, the Board of Education does not have the right to use the revenue to offset these unanticipated expenses; however, the funds could go a long way to help the Board of Education manage their budget shortfall this year.
On behalf of the Board of Education, Mr. O’Connell requested the Board of Finance to consider a supplemental allocation that will allow for a fair match of that revenue to the expenditure. Mr. O’Connell was asking the Board of Finance to consider allocating the excess revenue that the city did not include in its budget that’s directly attributable to these cost overruns in the Board of Education’s budget, which the Board of Education did not foresee, in an attempt to better balance the Board of Education budget.
Mr. O’Connell pointed out that the administration has frozen all discretionary spending and it continues to monitor the situation very carefully. The administration is continuing to find additional efficiencies.
Should the Board of Finance oppose the request, the administration will have to plug a $700,000.00 shortfall by year end and the means to do so will be significantly more painful and detrimental to education in Torrington than what they would need to do to find $300,000.00 worth of shortfall.
Mr. Cornish said he was supportive of the requested allocation with the caveat that Nancy Haynes and Alice Proulx confirm the numbers in order to make the Board of Education whole from the perspective of out-of-district placement.
It was pointed out that the Transportation Budget is also directly affected by out-of-placement students.
Mr. O’Connell indicated that the Board of Education may be forced to increase the budget in the future for more out-of-student placements than they actually have in order to avoid this very problem.
Mr. Zeller inquired whether or not a cost saving is achieved by out-placing a student in terms of being able to eliminate an Aide’s position, for instance.
Dr. O’Brien indicated that any cost saving is usually insignificant. Often times, they are short a staff person or two and are looking for someone to take over.
Mayor Bingham asked Dr. O’Brien if she was confident that the Board of Education will be able to cover the remaining deficit should this additional revenue be placed toward the deficit.
Dr. O’Brien said it’s totally unpredictable. They will be hard pressed to find $250,000.00 worth of economies without seriously impacting the regular education programs for the remaining 86% of the students.
Mr. O’Connell said his official request was not for a specific dollar amount, but rather for a commitment from the city that the excess cost revenue received by the city, over and above what the city budgeted for, will be allocated as a supplemental allocation to the Board of Education. The specific amount will be determined.
ADD TO THE AGENDA #950
Mr. Cornish made a motion to add an item to the agenda by 2.3rds vote in regard to a transfer of excess cost grant funds to the full amount of the state reimbursement. Mr. Bushka seconded the motion. Unanimous.
MOTION #975
Mr. Cornish made a motion to approve the transfer of excess cost grant funds to the full amount of the state reimbursement over and above the estimates in the current budget. (amount to be determined.) Mr. Farley seconded the motion. Unanimous.
SOFTWARE: ASSESSOR’S OFFICE #1000
On a motion by Mr. Cornish, seconded by Mr. Farley, a discussion took place in regard to the request to authorize $40,501.00 from Contingency to purchase software for the Assessor’s Office from Quality Data Services.
AMEND MOTION #1180
At Mayor Bingham’s request. Mr. Cornish amended his motion to authorize “ UP TO” $40,501.00 from Contingency to purchase software for the Assessor’s Office from Quality Data Services. Mr. Farley amended his second. Unanimous. (The reason for the amendment is that the $9,000.00 for the one time server may be of a lesser cost and the data conversion may not have to occur.)
NEW VEHICLE: ENGINEERING #1360
On a motion by Mr. Cornish, seconded by Mr. Bushka, the board voted unanimously to purchase a new vehicle to replace one in Engineering that was totaled in an accident. Payment will be processed through vehicle replacement account not to exceed $19,000.00. (This request was approved by the City Council on 2/20/07.)
VETERANS’ PLAQUE #1475
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to transfer $600.00 from Contingency to the Veterans Plaque Fund 231. (This request was approved by the City Council on 2/20/07.)
BUDGET TRANSFERS #1620
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to accept the budget transfers for fiscal year ending June 30, 2007.
BUS: MAYOR & MEMBERS #1630
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to consider business presented by Mayor Bingham and members of the Board of Finance.
Mr. Cornish inquired whether it was policy that disbursements over $500.00 contain approvals from the Mayor, the Comptroller and the department official. Ms. Proulx indicated that it was policy.
Mayor Bingham reported that he received a letter of resignation from Board of Finance member, Joseph Nader, effective immediately upon receipt. A new member is being sought.
On behalf of the board, the Mayor’s Office will send Mr. Nader a letter wishing him well and thanking him for his years of service.
Mayor Bingham polled the board members in regard to moving the monthly meetings to 5:00 p.m. All agreed to do so.
ADJOURNMENT #1790
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to adjourn at 5:00 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
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