BOARD OF FINANCE
TOWN OFFICE BUILDING
40 OLD FARMS ROAD
WILLINGTON, CT 06279
REGULAR MEETING MINUTES
Thursday, January 17, 2013
Members Present: Members Absent:
Ken Schoppmann, Chairman None
Ann Marie Brown, Vice-Chair
Alan Ference, Secretary
Elizabeth Marco
Peter Latincsics (arrived 7:16)
Robert Wiecenski
Elizabeth Treiber - Alternate
Annemarie Poole – Alternate
Also Present: Christina Mailhos, 1st Selectman; Donna Latincsics, Business Manager; Tish Ignatowicz, Treasurer; Rob Howard & Jenna Krzesicki Auditors from Grant Thornton
Chairman Ken Schoppmann called the meeting to order at 7:00 P.M. He announced that the Agenda was not published on a timely basis but we were advised to proceed with meeting.
SEATING OF ALTERNATES
Elizabeth Marco motioned to seat Annemarie Poole for Peter Latincsics, Alan Ference seconded. All were in favor, motion carried.
PRESENT TO SPEAK – no one.
APPROVAL OF MINUTES
Motion to approve the Regular meeting minutes of the December 20, 2012 regular meeting was made by Alan Ference, Robert Wiecenski seconded with the following amendments. All were in favor, motion carried.
Under Economic Development it should read - The funds they have are earmarked for upcoming training classes and business networking.
Pg 2, under transfer requests, 2nd paragraph should read – Tax Collector was present to answer questions…..
Board of Finance -2- January 17, 2013
NEW BUSINESS
Audit Presentation FY 2011-2012
Robert Howard, Jr. CPA and Jenna Krzesicki, Sr. Assoc. were present to review their findings of the Audit and to answer questions from the Board. Distributed prior to the meeting were the Comprehensive Annual Financial Report, Federal and State Single Audit Report and Communication with those charged with Governance and Management responsibilities.
Robert Howard reviewed the Scope of Work, Auditor's Reports, Financial Highlights, Required Communications with the Audit Committee and answered questions from the Board. There were no significant findings in the audits that they performed. They were complimentary to Donna Latincsics and Tish Ignatowicz for the work they had done.
Peter Latincsics arrived at 7:16 pm.
Chairman Schoppmann expressed our thanks to Donna Latincsics and Tish Ignatowicz for a job well done.
Revenue Presentation
Treasurer Tish Ignatowicz presented the Board with a Revenue Budget Estimate for the FY 2013-2014. GL only went up .14% or approx $15,000. She is forecasting additional revenue of $90,710 for the current fiscal year, 2012-2013. A majority of that is in taxes. She reviewed the rest of the estimate for this year.
There is an increase in investment income because of a change with our banking. We are getting a little higher interest rate thru Rockville Bank. If our expenses remain the same she is forecasting a shortage of $291,584 in revenue for fiscal year 2013-2014. That is without applying any fund balance, which was 300,000 in fiscal year 2012-2013.
Fund Discussion
Donna Latincsics gave the Board an opportunity to ask question about the dictionary that was published last years and to ask questions about the Funds and how we use them. She informed the Board that we have added Fund 7 for Emergency Preparedness. She will update that at the end of the year.
Chairman Schoppmann said that he would like to discuss the two funds we are most concerned with, the General Fund and projections of where it will end up this year and the Emergency Services Fund and the sustainability of it. He said that the General Fund ended the year with 1.9 million. Estimates during the last budget season indicated that we would be at approx $1.5 million. We are in a healthier position then we thought we would be. There will not be a lot of givebacks this year. Place holders in the education budget reduced and the remaining 2 were used.
As for the Emergency Services Fund, the revenue stream is declining. He does not believe we can continue to use $28,900 from that fund to cover operating expenses as we have in previous years. As of the end of this year there will only be one lease for the new vehicle at Willington Hill. There is a request for an ambulance and equipment in the CIP. There is a balance right now of approximately $200,000. With current activity and proposed leases it will be gone in three years. The fund is not sustainable at these levels.
Board of Finance -3- January 17, 2013
Chairman Schoppmann said that Selectman Mailhos is trying to form an efficiency committee to get the two departments together. There are ongoing discussions with the Board of Selectmen on how to work together for the good of the Town.
OLD BUSINESS
Turnpike Road Project Update
An updated status report was emailed to all the Board members from the Selectmen’s Office. 1st Selectman Mailhos was present to answer questions. Selectman Mailhos informed the Board that Phase 1 is complete but they have not received all the bills yet. We will not have to touch the contingency founds for phase 1 or phase 1A. The plan for phase 2 is going before inland wetland next month and as soon as we get approval we will go out to bid. Phase 3 – working on funding sources from STEAP Grant and CIP.
CORRESPONDENCE – none.
GOOD & WELFARE
Chairman Schoppmann updated the Board on what he knows so far for the upcoming budget. All of the numbers are preliminary at this point as none of the budgets have been approved by their respective boards.
Region 19 is a favorable $400,000 because of a reduction in the number of Willington students there. For every $100,000 change in their budget our share is approximately $25,000 in either direction.
Our own education budget looks like a $400,000 increase. Labor contracts, health insurance and special Ed costs for outplacement make up the majority of the increase. This budget has approximately a $17.000 per student cost.
Emergency Services has an approx. $20,000 increase, primarily from increases in wages, workman’s comp insurance and unemployment tax. We will probably not be able to use $28,900 from the Emergency Services Fund as stated earlier.
The Selectman’s budget is sitting at $250,000 increase. Wage increases of 2%, a proposal for a resident state trooper and an increase in CIP funding of $100,000 make up the bulk of the increase.
CIP is looking at approximately $16,000,000 in proposed projects that we are trying to fund with $400,000 annually. We also have the revenue stream with the ambulance fund of $140,000 and STEAP Grants and various other financing. The Town at one time was funding $700,000 annually.
Library and other smaller budgets will probably propose a $15,000 to $20,000 in increases. With all the increases the mil increase would be about .6, assuming $300,000 applied from the general fund balance.
Board of Finance -4- January 17, 2013
Selectman Mailhos said that she will be talking with the Board of Selectman about merit increases and the issue of recording secretaries, job descriptions and hourly pay.
ADJOURMENT
The meeting was adjourned at 9:03 p.m.
Respectfully submitted,
Debra L. Lewis
BOF Recording Secretary
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