MINUTES
BOARD OF FINANCE
February 19, 2013
A REGULAR MEETING of the Board of Finance was held in the City Hall Auditorium on Tuesday, February 19, 2013.
Present were Mayor Ryan Bingham, Corporation Counsel Raymond Rigat, Board of Finance members Laurene Pesce, Mark Bushka, Thomas Scoville, and Frank Rubino, along with Comptroller Alice Proulx and Fleet Manager Emil Castro. Board of Finance members Bill Lamoin and Brian Paganini were absent.
Mayor Bingham called the meeting to order at 5:00 p.m.
MINUTES
On a motion by Mrs. Pesce, seconded by Mr. Scoville, the Board voted unanimously to accept the minutes of the Regular Meeting held on January 15, 2013.
OPEN TO THE PUBLIC
On a motion by Mr. Rubino, seconded by Mr. Bushka, the Board voted unanimously to open the meeting to the public. There was no one present who wished to speak.
AUDIT PRESENTATION
Ms. Leslie Zoll of BlumShapiro reviewed the most recent audit report saying Torrington has consistently received an unqualified opinion. She said that as of June 30, 2012, Torrington's total net assets were 71.5 million dollars for governmental activities and business-type activities such as the WPCA were 8.4 million. These figures are down in total by $668,000, she said.
Regarding the fund financial statements, Ms. Zoll said the General Fund went up by 1.6 million dollars which is very favorable for the City. She said the Unassigned Fund Balance as of June 30, 2012 was 4.3 million dollars, 3.7% of the General Fund expenditures. She explained that this is on the low side for bond rating agencies, but the figures definitely improved from the previous year –from 2.7% in 2011 to 3.7% in 2012.
Ms. Zoll next reported on the proprietary funds, such as WPCA and the Internal Service Fund which includes the Self-Insurance Fund and Maintenance Fund. She said the WPCA Fund went up by 2 million dollars from last year, and the Internal Service Fund went down $54,000 from last year.
The Fiduciary Funds, or Pension Trust Funds, held steady with the investments in the fund, she said, and the net increase was $8,000 as of June 30, 2012. Ms. Zoll said the net pension obligation decreased from last year, which is a positive trend. She said the Police & Firemen's Pension Fund went down about $18,000, and the City Employees' Retirement Fund went down about $7,000.
Ms. Zoll said that Fiscal Year 2012 was a little bit under on the revenues, by about $495,000, but expenditures made up for that with a favorable variance of 1.4 million dollars. This had an impact on the increase in the General Fund Balance for the year.
Ms. Zoll said that BlumShapiro is required to report to the federal government what Torrington has spent with State and Federal assistance money, and test some of those programs. She said there were no findings regarding major Federal or State programs, even with the new FEMA funding that came in last year.
Further, there were no issues to report regarding internal control in relation to financial statements, and there were no significant deficiencies or material weaknesses.
Ms. Zoll reported that the Comptroller's office has done a good job eliminating past issues such as risk assessment and information technology controls.
Mr. Bushka asked if BlumShapiro recommends a certain percentage for fund balance. Ms. Zoll said Connecticut has a big range, roughly between 5 and 15%. Torrington is on the low side at 3.7% but has improved from previous years, she said.
FOUR SNOW PLOWS
On a motion by Mr. Bushka, seconded by Mr. Rubino, the Board voted unanimously to authorize the allocation of $35,847.76 for the purchase of four Larochelle Snow Plows from Truck Builders of CT, having been approved by City Council on February 4, 2013.
Mr. Castro clarified that there was only one bidder and the increased cost of $1,543.00 was due to freight charges. He explained that in the past, plows were dropped off from trucks ordered by other towns. He said it had been budgeted for $34,304.00, and he asked the Board to allow him to withdraw the $1,543.00 from the Vehicle Replacement Fund.
Ms. Proulx said the funds are available in the Vehicle Replacement fund, but this will impact the monies available in the fund in the new budget year. She said monies from vehicle sales are in the Vehicle Replacement Contingency fund.
BUSINESS BY MAYOR AND MEMBERS OF BOARD OF FINANCE
On a motion by Mrs. Pesce, seconded by Mr. Rubino, the Board voted unanimously to consider business by the Mayor and members of the Board of Finance.
Mrs. Pesce inquired about recent storm-related expenses. Mayor Bingham said there's a 48-hour period that contains the peak costs for the storm. This should be reimbursed by FEMA at a 75% rate, he said, because the President declared the storm a Federal Emergency. Ms. Proulx reported that past FEMA requests have all been paid.
Mr. Scoville asked when the Grand List figures will be completed. Mayor Bingham said the Assessor will have it completed soon. Mr. Scoville then asked how the Governor's initial budget proposals look. Mayor Bingham said there will be a lot of shifting and moving, as well as conversations with the Board of Education. He said this pales in comparison to the Governor's proposed changes in the car tax which may cost Torrington between one and two million dollars as a direct reduction in revenue. Mayor Bingham reminded the Board that this is a process.
ADJOURNMENT
On a motion by Mrs. Pesce, seconded by Mr. Scoville, 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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