MINUTES
BOARD OF FINANCE
NOVEMBER 20, 2007
A REGULAR MEETING of the Board of Finance was held on Tuesday, November 20, 2007 in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, members of the Board of Finance Daniel Farley, Bruce Cornish, Thomas Scoville, and James Zeller, Comptroller Alice Proulx, and Public Works Director Gerald Rollett.
Board of Finance member Mark Bushka, and Corp. Counsel Ernestine Yuille Weaver were absent.
Mayor Bingham called the meeting to order at 5:00 p.m.
MINUTES #020
On a motion by Mr. Scoville, seconded by Mr. Cornish, the board voted to accept the following minutes. Mr. Farley abstained from A and Mr. Cornish abstained from D.
A. Minutes of the special joint meeting with the Council held July 30, 2007 on Vehicle Replacement.
B. Minutes of the regular meeting held September 18, 2007.
C. Minutes of the special joint meeting with the Council held September 20, 2007 in regard to the Tax Collector.
D. Minutes of the special joint meeting with the Council held November 7, 2007 in regard to the referendum.
OPEN TO THE PUBLIC #055
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.
TORRINGTON WATER SUPPLY REVENUE #070
On a motion by Mr. Farley, seconded by Mr. Zeller, the board voted unanimously to accept the Council’s request to allocate Torrington Water Supply revenue to be used for water supply contingency expenses and capital expenditures. The request was to transfer a total of $24,781.00 to a fund for exclusive use for Torrington Water Supply expenses and to allow future annual transfers of income, when available, in amounts not to exceed five percent per year.
Mr. Rollett explained that the Torrington Water Supply is the city’s 20,000 feet of 12 inch water main on Winsted Road, which the city has been operating since the 1970's. The city charges Torrington Water Company rates plus 10% and it uses the money to fund the operations of the system along with the income received by buying water wholesale. If anything goes wrong with the system, the city actually loses
money. The Department of Health performs a yearly inspection. During their last inspection, they recommended the city set up a fund to cover unexpected expenses for potential major maintenance items in the foreseeable future. They expressed their concern that the water line is getting old and may require more attention.
Mr. Rollett noted that a break in the main which occurred perhaps fifteen years ago was discovered recently when making plans for the bike path. The 12-inch main was bypassed with the 8-inch main currently in service. Mr. Rollett wants the repairs to be done prior to the bike path being built over it. The repairs should cost approximately $11,000.00. The capital fund being requested will cover this kind of expenditure. By placing 5% of the income into the fund, it should be self-funding. Getting rid of the water system was recommended by the Department of Health and one of the city’s goals.
BUDGET TRANSFERS #410
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to accept the Council’s request to authorize the budget transfers for year end 2006/2007 per the Comptroller’s memo dated 9/21/07.
MODIFY THE BUDGET #420
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to accept the Council’s request to authorize the modification of the 2007/2008 budget for FEMA reimbursable flood projects, per the Comptroller’s memo dated 11/13/2007.
TRANSFER: EVICTION FUND #490
On a motion by Mr. Farley, seconded by Mr. Cornish, the board voted unanimously to accept the Council’s request to transfer $1,301.25 from Contingency into the Eviction Fund.
BUDGET TRANSFERS: PARKS & REC. #515
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to accept the Council’s request to authorize the budget transfers from the Parks & Recreation Director.
EMERGENCY RESPONSE VEHICLE #530
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to accept the Council’s request to use $11,685.00 from Contingency to cover expenses toward the Phase II completion of the Police Department’s emergency response vehicle under the Law Enforcement Homeland Security Grant. Funds will be reimbursed by the state.
BOARD OF EDUCATION: EXPEND FUNDS #550
On a motion by Mr. Cornish, seconded by Mr. Zeller, a discussion took place in regard to the Council’s request to authorize the Board of Education to expend $3,680.00 of auction proceeds from Vehicle Replacement Contingency.
Mayor Bingham said the request was brought forth simply because the Board of Education needs to get the trucks ready for winter. However, it’s almost contradictory to our initiative with the Board of Education on vehicle replacement.
Mr. Cornish explained that the Board of Education seemed to be operating on a significant surplus this year and it seemed to be a small amount to move around so early in the year. Changing policy at this point for a small amount without having any real urgent need for the transfer is questionable. It was his belief that holding it in abeyance until there is a need might be a better way to approach it. The Board of Education should be allowed to operate within the budget that’s been given to them and make transfers if needed at the end of the cycle.
Mayor Bingham asked Mr. Cornish if the Board of Education may have cut out any line items that this request would have potentially come from in anticipation of the city taking over their vehicles in our Vehicle Replacement Account.
Mr. Cornish said he wasn’t aware that they had, but he didn’t have that level of detail. He pointed out that there was no representation present to explain the request any further.
Mayor Bingham indicated that the city was given a FAX stating that there was an emergency need for snow removal equipment.
Mr. Zeller asked if the funds were already allocated to the Vehicle Replacement Account.
Comptroller Proulx stated those auction proceeds received by the city go into the Vehicle Replacement Contingency Account, and are to be used for emergency purposes. The board initially thought that they should have received only the revenue from the proceeds. Since the general fund paid for the equipment in the beginning, it made sense that the same policy would apply to the Board of Education equipment and supplies to the city side of the equipment. When Mr. Bascetta requested the funds, she made him aware of the fact that they had to follow the same policy as all other departments in the city, which was to get the approval from the boards to expend the funds. The answer to Mr. Zeller’s question is yes, the funds are in the Vehicle Replacement Contingency.
Mr. Cornish also recommended that the request pass through the administration of the district rather than coming straight from Mr. Bascetta, as a memorandum to the Mayor. The chain of command should be followed; therefore, the Superintendent should be signing off on the request.
Mayor Bingham stated everyone needed to get accustomed to the new system.
MOTION TO TABLE #680
On a motion by Mr. Cornish, seconded by Mr. Zeller, the board voted unanimously to table the Council’s request to authorize the Board of Education to expend $3,680.00 of auction proceeds from Vehicle Replacement Contingency
BUS: MAYOR & MEMBERS #760
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to consider business presented by Mayor Bingham and members of the Board of Finance.
Mr. Cornish stated, as his term on the Board of Finance has come to a conclusion, he thanked a plethora of people who have touched him along the way, and noted that he was impressed with the quality of department heads assembled in the city. Among many, he thanked Comptroller Alice Proulx and Nancy Haynes for their help and guidance.
Mr. Farley asked for an update on the North End Fire Station and the mold and mildew issue at the Police Department.
Mayor Bingham indicated that the contractors had been removed from the North End Fire Station project and JP McGuire is now doing the work. The mold and mildew issue at the Police Department was isolated to only a few spots and West State Mechanical will be hired to change some of the HVAC equipment causing the problem.
Mr. Scoville thanked Mr. Cornish for all the information he brought to this board.
Mr. Scoville inquired when the bonding for the City Hall Renovation would begin, since there is no state reimbursement for this project, should the referendum pass on December 13th.
Ms. Proulx said she thought the bonding would start immediately, but she would have to check with Treasurer, Dick Friday.
Mr. Rollett spoke on how it was planned a year ago, if the previous referendum for City Hall renovations passed. He indicated that Mr. Friday intended to rely on short term borrowing during construction and then apply for the actual number when the project is done. So, the larger payments won’t come until completion of the project.
Mr. Zeller said short term borrowing probably isn’t as significantly different from long term borrowing as it was a few years ago, so the costs may be in the same ball park.
Mr. Zeller always considered Mr. Cornish as someone whom he could lean on for his thoughts and expertise. Mr. Cornish has done a great job presenting the big picture, as well as the specifics of particular issues, to the board in a very clear and understandable fashion.
Mayor Bingham thanked Mr. Cornish for his hard work on this board as well as being liaison for the Board of Education. He pointed out that Mr. Cornish was truly committed and that he never took his appointment to this board lightly. He wished him well in his future.
ADJOURNMENT #1280
On a motion by Mr. Cornish, seconded by Mr. Farley, the board voted unanimously to adjourn at 5:40 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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