MINUTES
BOARD OF FINANCE
April 17, 2012
A REGULAR MEETING of the Board of Finance was held in the City Hall Auditorium on Tuesday,
April 17, 2012.
Present were Mayor Ryan Bingham, Corporation Counsel Ernestine Weaver, Board of Finance members Bill Lamoin, Laurene Pesce, Brian Paganini, Thomas Scoville and Wendy Traub, Comptroller Alice Proulx, Fleet Manager Emil Castro and Purchasing Agent Pennie Zucco. Member Mark Bushka was absent.
Mayor Bingham called the meeting to order at 5:00 p.m.
MINUTES
On a motion by Mrs. Pesce, seconded by Mr. Paganini, the Board voted unanimously to accept the minutes of the Regular Meeting held on March 20, 2012, as corrected. Mrs. Traub abstained.
OPEN TO THE PUBLIC
On a motion by Mrs. Traub, seconded by Mr. Paganini, the Board voted unanimously to open the meeting to the public. There was no one present who wished to speak.
AUTHORIZE EXPENDITURE – 2 PLOW TRUCKS
On a motion by Mrs. Pesce, seconded by Mr. Paganini, the Board considered accepting the Purchasing Agent's, the Superintendent of Street's, and the Fleet Manager's recommendation to authorize the expenditure of $380,685.00 to purchase two International Plow Trucks from Marola Motors Sales, Inc. of Torrington, CT.
Mayor Bingham explained the bids came in lower than expected and were approved by City Council.
In reply to Mr. Lamoin's question, Mr. Castro said there are no large purchases coming up in the next two years, and he will review the schedule.
Mrs. Traub said she is concerned that Marola Motors might always be our vendor because of their relationship with the International brand. Mr. Castro said this bid was close and might have gone to another vendor if it weren't for the trade-in offers that brought the price down.
Mr. Castro said the scrap metal value is around $5,000 but the trade-in value is $15,000.
Mrs. Traub suggested that the purchase be put off to the next fiscal year since we had such a mild winter.
Mr. Scoville arrived at 5:06 pm.
Mr. Castro said he'd lose the trade-in value if the purchase was put off because the frames are starting to rust and separate.
Mr. Lamoin asked Mr. Castro what he would do if the purchase were put off 12 to 24 months. Mr. Castro replied that he would reassess the integrity of the frames and have them repaired.
Mr. Scoville asked what the effect would be on the budget if this expense were not authorized. Ms. Proulx said the funding won't go to surplus but it could affect what is set aside next year for vehicle replacement. Mr. Lamoin agreed that the contribution to the reserve could be adjusted.
Mayor Bingham said an increase will be seen in vehicle replacement reserves due to rising costs. He said the vehicle will have to be replaced, that's why we have a plan, and recommended moving forward with the purchase.
The Board voted unanimously in favor of authorizing the expenditure.
BUSINESS BY MAYOR AND MEMBERS OF BOARD OF FINANCE
On a motion by Mrs. Pesce, seconded by Mr. Paganini, the Board voted unanimously to consider business by the Mayor and members of the Board of Finance.
Mrs. Traub noted that for the 12th time, Torrington was voted as one of the best music districts in the nation. She said the Board should consider Torrington's great music program when voting on the Board of Education Budget.
Mayor Bingham said by Charter the Board is allowed to request any and all information that would help them make an appropriate judgment on the expenditures that the Board of Education has requested. He encouraged members to ask questions before the meeting in order to make a good judgment call on this budget.
Mayor Bingham said that hopefully we'll have some early indications on what the mill rate will look like and cautioned that it seems the mill rate will increase. He said he hopes to strike a balance between cuts and a modest increase in the mill rate, and added that expenses have increased and no new revenue has been found.
Mr. Scoville asked what a mill equates to. Ms. Proulx replied it is probably about 2.3 million. Mayor Bingham said the Grand List went up about ½ percent, which won't equate to more than $500,000 of increased revenue.
Mayor Bingham explained the Board of Finance's upcoming Board of Education Budget approval process. He said the Board of Finance will have two votes: One for the General Operating Budget and one for the Capital Budget. The Board of Finance may request general reductions but not specify the line item to be reduced in the Board of Education Budget. Mayor Bingham said they do have that control on the City Budget, however. He said once the Budgets are approved and the revenue numbers finalized, the Board of Finance will set a mill rate.
Mayor Bingham and Mrs. Pesce requested that a spreadsheet be projected on a screen during the budget meeting to illustrate the changes being made.
ADJOURNMENT
On a motion by Mr. Scoville, seconded by Mrs. Traub, the Board voted unanimously to adjourn at 5:17 p.m.
ATTEST: JOSEPH L. QUARTIERO, CMC
CITY CLERK
Respectfully Submitted,
Carol L. Anderson, CCTC
Asst. City Clerk
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