MINUTES
BOARD OF FINANCE
AUGUST 27, 2008
A REGULAR MEETING of the Board of Finance, adjourned from Tuesday, August 19, 2008, was held on Wednesday, August 27, 2008 in the Council Chambers.
Those in attendance included Mayor Ryan J. Bingham, members of the Board of Finance Daniel Farley, Laurene Pesce, Thomas Scoville, and Wendy Traub, Corp. Counsel Ernestine Yuille Weaver, Comptroller Alice Proulx, and Parks & Recreation Director Brett Simmons. Those who were absent included Board of Finance members Mark Bushka and James Zeller.
Mayor Bingham called the meeting to order at 5:40 p.m.
MINUTES
On a motion by Mr. Farley, seconded by Mr. Scoville, the board voted unanimously to accept the minutes of the regular meeting held July 15, 2008.
OPEN TO THE PUBLIC #010
On a motion by Mrs. Traub, seconded by Mr. Farley, the board voted unanimously to open the meeting to the public. There was no public participation.
BUDGET TRANSFERS #015
On a motion by Mr. Farley, seconded by Mrs. Pesce, the board voted unanimously to authorize the budget transfers relating to the fleet chargeback implementation, per the Comptroller’s memo dated August 11, 2008.
Mr. Scoville inquired whether or not we were following the funding recommendations that were made concerning Vehicle Replacement.
Ms. Proulx indicated that this year’s funding is slightly less than what was recommended, and that they will continue to review it and make modifications.
Mayor Bingham added that this is the flux year because we’re actually using the charge back system to get a real explanation of costs.
Mrs. Traub asked if the charge back system was something we wanted to pursue with the Board of Education. She could ask them if they were still interested in participating.
Ms. Proulx indicated that the Board of Education was involved in the charge back system but not involved in the actual vehicle replacement at this time.
UPGRADE VEHICLE: PARKS FOREMAN #145
On a motion by Mr. Farley, seconded by Mrs. Traub, the board voted unanimously to upgrade the vehicle assigned to the Parks Foreman at a dollar amount not to exceed $26,000.00.
Parks & Recreation Director Brett Simmons informed the board that the vehicle currently used by the Parks foreman was scheduled to be replaced in 2009 under a ten year cycle in the Vehicle Replacement Program.
Mrs. Pesce inquired why this board’s approval was required for change in specifications to vehicles.
Mayor Bingham said the reason was because it creates an amendment to the Vehicle Replacement Policy.
Ms. Proulx indicated that there is a fund balance in the Vehicle Replacement Account. As modifications come about, they modify the funding level in the next year, based on whatever the expenditures were and projected out into the future. The budgeted amount to replace the vehicle for the Parks foreman was $19,717.00.
Mr. Simmons said additional monies will be available because he will not replace an air compressor at a cost of $31,000.00 projected in the plan for 2009.
Mr. Scoville indicated that return on investment and fuel efficiency should be considered and encouraged, and GMC and Ford are both making strides in fuel efficiency.
SHREDDING OBSOLETE RECORDS #310
On a motion by Mrs. Traub, seconded by Mr. Farley, the board voted unanimously to use “Up To” $2,200.00 from Contingency for the shredding of obsolete records from all City Hall Departments and Parks & Recreation.
Mrs. Pesce asked why this expense wasn’t built into the budget.
City Clerk Joseph L. Quartiero informed the board that he received a $50,000.00 grant for Sickler & Murphy to perform a records management of all departments with the exception of his department which was paid by a $12,000.00 grant from the previous year. Sickler & Murphy identified our archival records, plus all records that should be destroyed. Those records will be shredded to protect any sensitive information. Every department has been asking the Public Records Administration for permission to destroy these records and we’ve been stock piling them in the old Social Services room. Shred It will shred the obsolete records on site and haul them away. The departments didn’t included these costs into their budgets because they didn’t know what that cost
would be.
Mayor Bingham added that the Municipal Renovations Committee has been pushing department heads to destroy as much as they can so it won’t have to be moved to temporary headquarters in anticipation of City Hall’s renovation.
SECTION B #485
On a motion by Mr. Farley, seconded by Mr. Scoville, the board voted unanimously to consider business in Section B.
SECTION B:
MODIFICATION OF 2007/2008 BUDGET #495
On a motion by Mrs. Pesce, seconded by Mr. Scoville, a discussion took place in regard to the Comptroller’s request to authorize the modification of the 2007/2008 budget as follows:
0010.0046.5900.0000 BOE Program Expenditures* $28,776.00
0010.0046.5970.0000BOE Capital Outlay ($ 2,564.00)
0010.0078.4050.0001State Grant Agency Placement $26,212.00
* Additional appropriation request is greater than the original Superintendent request due to additional expenses recorded after 8/15/08.
Ms. Proulx explained that this is the overdraft that was anticipated for the Board of Education’s year-end budget because of their out-of-district costs.
Mrs. Traub indicated that she asked Mr. Rubino two days ago if they had an idea of what their year-end number was going to be and has not received a response to date.
Mrs. Traub said she was uncomfortable approving items that were just presented to them. Therefore, she made a motion to table the matter until she had a chance to review it. Mr. Farley seconded the motion. Unanimous.
TAX COLLECTOR FORENSIC AUDIT #610
On a motion by Mrs. Pesce, seconded by Mrs. Traub, a discussion took place in regard to the request to expend UP TO $69,250.00 from the financial management upgrade prior year encumbrances for services to be provided relating to the Tax Collector forensic audit.
Mayor Bingham explained that UHY, LLP quoted dollar figures for the work included in the RFP, and a final contract will include this scope of services. The audit should help city officials decide whether to remain with a private tax collector or change to a public tax collector in three years from now. Should they choose a public Tax Collector, they will need to create a more specific contract.
Mr. Scoville inquired about the funds coming from the financial management upgrade prior year encumbrances to pay for these services.
Ms. Proulx indicated that funds totaling approximately $150,000.00 accumulated over a four year period for the consolidation of the city with the Board of Education, however, those funds were never expended for that purpose and they don’t see the consolidation occurring in the near future. She noted that this account will more than likely be closed after this expense and the balance will go into the fund balance. Should the board so desire she could run a report through each phase of the project on how much is being expended.
Mrs. Traub inquired about the amount being requested ($69,250.00) as opposed to the amount on UHY’s bid document ($91,750.00).
Mayor Bingham stated that UHY quoted three phases and the request before the Board of Finance is merely for phases one and two. Phase three will only be needed if they find something they feel needs a forensic audit. Should phase three be needed, more funds will be requested at that time. The item still has to be approved by City Council.
Mrs. Pesce asked if the approval of this request would create an opportunity for the auditors to audit themselves in any way.
Mayor Bingham said no because UHY doesn’t audit the Tax Collector.
MOTION TO TABLE #870
Mrs. Traub made a motion to table until she could review the information provided to the board. Mr. Scoville seconded the motion. Unanimous.
BUS: MAYOR & MEMBERS #870
On a motion by Mr. Farley, seconded by Mrs. Traub, the board voted unanimously to consider business by Mayor Bingham and members of the Board of Finance.
Mr. Farley inquired about the funding for the installation of a new slate roof over the Torrington Public Library.
Mayor Bingham indicated that the library has a trust, plus they may have money that was raised several years ago to do a complete renovation of the facility. To the best of his recollection, the city gives the library $10,000.00 a year.
Mrs. Traub inquired about the city’s year-end.
Ms. Proulx indicated that the fiscal year and the financial management system were closed out, and the end of the year may not be quite as bad as it looked initially.
Ms. Proulx said she distributed information to the Board of Finance in regard to the implementation of the GASB Statements 43 & 45 regarding post employment benefits. The city will probably have a substantial liability which will be reported on the city’s financial records. There’s also a possibility of looking to fund the post employment benefit liability because it may impact on the city’s bond rating. It’s treated somewhat like the pension liability because when you hire someone you establish a liability for their retiree health and life insurance benefits. She was hoping to get a committee together consisting of herself, Mayor Bingham, a representative from the Board of Education and several Board of Finance members to meet with the actuaries, go over the figures, and
come up with a plan or policy on how to move forward and how to fund this liability. Anyone wanting to volunteer could get in touch with the Mayor’s office.
ADJOURNMENT #1140
On a motion by Mrs. Traub, seconded by Mr. Scoville, the board voted unanimously to adjourn at 6:16 p.m.
ATTEST: JOLINE LeBLANC
ASST. CITY CLERK
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