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Minutes: Board of Finance, 2002		 Home
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Web page last updated: January 27, 2003
Disclaimer: While we have attempted to reproduce them accurately, the electronic documents you see here are not the official public documents. Official copies may be obtained on paper from the Town Clerk. Also note that minutes of recent meetings are often not yet approved by the Board, and are subject to correction.

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November 18, 2002

 Chairman Michael Jackson called the meeting to order at 5:00 p.m.

Present:
Board: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Barbara Brown, Mark Lyon
Selectman: Elaine Luckey
Guests: Washington Community Housing Trust: Dick Sears, Peter Talbot, Valerie Friedman
Press: David Lombino, Litchfield County Times

Riverwoods Senior Housing: Dick Sears updated the Board on the Riverwoods Housing complex on River Road. The project had come in on-time and on-budget at a cost of approximately $1.3 million. It is essentially complete. Revenue received toward construction included a Town grant of $250,000, a grant/loan from the First Congregational Church for $240,000 at 0% interest, with repayments of the principle beginning after two years for a period of 40 years, private donations of $64,400, and a New Mil bank loan at a rate of 7.5% for $750,000. The Housing Trust is currently renegotiating with the bank to borrow an additional $75,000 for operating capital and transition expenses from construction. Their operating revenue budget is estimated on eight one-bedroom apartments at $625, four 2-bedroom apartments at $725 and three garages at $75 each for an annual total of $97,500. Members of the Board noted their concern that only four of the twelve units are currently occupied. Dick reported applicants must complete a thorough qualifying process through Elderly Housing Management, which could take three-five weeks. Some may not quality for a variety of reasons. He felt the town newsletter, news media, etc. had spread the word about the availability of the apartments; however, a sense of timing and lifestyle must also be considered, as well as an age restraint. Apartments cannot be held until people turn 62, nor can people be excluded because of federal housing laws. He feels that the waiting list that will ultimately develop will primarily consist of Washington-based people. Liddy noted housing is of a cyclical nature. It is not when the housing is available but rather when people need it. Dick felt the remaining units will be filled by the end of March 2003, if not before. The Board noted the Trust must make every effort to communicate with the public, as it was the Town's implicit intent that this housing be developed for the residents of Washington. The Trust has scheduled a meeting of the town clergy as well as a seminar at the Senior Center to raise the awareness of the complex. It was also suggested that the Housing Trust contact town residents over the age of 62 to let them know the housing is available and that it is the first alternative they might consider.

Minutes of October 21st meeting were approved as submitted.

Treasurer's Report: Interest rates all low. Report accepted as submitted.

Tax Collector: Report accepted as submitted.

Financial Reports:

Discussion:

The meeting was adjourned at 6:35 p.m.

Respectfully submitted,

Kathy Gollow
Secretary

October 21, 2002

 Chairman Michael Jackson called the meeting to order at 5:00 p.m.

Present:
Board: Jack Field, Robin Hirschfield, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Barbara Brown, Mark Lyon
Selectman: Elaine Luckey
Guests: Barbara Johnson, Assessor
Press: David Lombino, Litchfield County Times

Minutes: Minutes of the September 15th meeting were accepted as submitted.

Tax Collector's Report: Report accepted as submitted. Will ask that date appear on next report.

Guests: Barbara Johnson reported the bid for revaluation of the October 1, 2003 Grand List was awarded to Lesher-Glendinning by the Board of Selectmen in the amount of $31,000. The firm has offered a 10% reduction if one-half of the cost is paid before the end of this month, which would reduce the contract price to $27,900. They have also agreed to reduce this further to $27,500 as she requested, which is the amount the Town expects to receive from a C.A.M.A. grant from the State. These funds are expected within 60-90 days. Barbara recommended the Board consider this offer. The Board agreed to obtain a credit report, and if positive, to enter into contract for $27,500. Rex Swain made a motion that the Board approve an amount not to exceed $13,750 as an ex-budget appropriation for the first half payment for this project, and that the remaining $13,750 be presented for approval at the May, 2003 town meeting. Robin Hirschfield seconded the motion, which was unanimously passed. Costs for reval were based on an average of $25/parcel for 300-400 parcels.

Treasurer's Report: Report accepted as submitted. The Treasurer will be asked to note the rates of interest on each account monthly.

Financials: The Board reviewed the General, Nonrecurring Capital and Town Aid Road funds.

Nonrecurring Capital: Rex Swain moved to return $7,932.39 to unappropriated status in the Nonrecurring Capital Fund as the following projects have been completed:

Total: $7,932.39

Motion was seconded by Robin Hirschfield and unanimously passed.

Excess funds have accumulated in the Capital Account from state grants and interest received over the past several years. It has been the Board's practice to transfer the full amount that has been specifically approved at town meetings from the General Fund to the Capital Fund. Discussion was held whether it is necessary to transfer the full amount of $445,990 as approved at the May 2002 town meeting or only those funds needed to cover costs. After further discussion, it was agreed to transfer the full amount as it will be easier to track and because the balances from both funds are taken into consideration when setting the mill rate. Michael Jackson made a motion to transfer $445,990 from the General Fund to the Nonrecurring Capital Fund. Rex Swain seconded the motion and it was unanimously passed. It was also agreed to transfer funds from the previous sale of a pickup from the Capital to the General Fund as recommended by the auditor.

New Business:

River Road Senior Housing: Discussion was held regarding the $25,000 approved at the May 2001 town meeting to subsidize rents for the River Road Senior Housing. Michael noted it had been his understanding that these funds were to be used to subsidize rents for Washington residents in the event the WCHT needed them to maintain an estimated $600/month rent/unit. Recently, he had been asked if the WCHT could use these funds as a working capital shortfall. Michael did not feel this was the intent of the funds and they had not been made available for this purpose. Question was raised as to why the apartments were not filled at this point. Liddy reported the Housing Trust had not initially promoted or advertised the project as they wanted to determine the in-town need to insure that Washington residents or their relatives would be given first consideration for this housing. Issues of delay of availability, timing of moves, etc. had affected the number of people able to make the move at a specific time. Currently four units are rented, two of which are Washington residents. The Trust is now beginning to promote the project, hoping it will raise the local awareness. Members of the Board felt this raised several questions about the demand for the housing, as well as the guidelines. It was agreed to ask representatives of the Housing Trust to attend the next meeting to bring the Board up-to-date on their projects.

Selectmen's Report:

Recycling Container: Elaine reported the Board of Selectmen had recommended the purchase of a 30 cubic yard recycling container for $4,125. While this is an unanticipated cost, it will reduce the number of hauling trips.

Use of School Building: Elaine reported Region 12's prior administration had decided to close the WPS school building evenings to reduce costs by $40,000. They would keep the Roxbury and Bridgewater buildings open and Washington residents could use the middle-high school for programs. The Parks and Rec Commission did not agree with this and felt the middle high school building would be used for school athletics and events and would be unavailable for their programs. The current administration did not feel a saving of $40,000 would be realized and has agreed that the Primary School will remain open as usual for use by the Town. They will meet with Parks and Rec commissioners to discuss the annual $3,000 that has been requested for reimbursement for work done on the fields.

Asbestos: A low bid of $12,480 was awarded for removal of asbestos from the town hall basement heating pipes, disposal and reinsulation.

Grant Writer: Elaine reported she had met with local resident Carole Powers regarding her experience in writing grants. She felt this assistance would be of benefit to the Town in seeking grants that might be available and completing the necessary documentation. The Board indicated their interest and she will be invited to come to a future Board of Finance meeting.

Registrars: Elaine reported further discussion had been held with Kenneth Johnson regarding training for the registrars. It was agreed to contract Mr. Johnson to provide training for the registrars, as well as updating the voter records. He would assure the Town that all information required for the November 5th election would be fully available and functional for that date and that the Registrars would become fully competent with the State system by the end of March 2003. This was agreeable to the Board. Robin Hirschfield made a motion that an ex-budget appropriation be approved in the amount of $1,800 for this purpose, seconded by Michael Jackson and unanimously passed.

S.T.E.A.P. Grant: Elaine reported the Town has received word that we have been approved for the S.T.E.A.P. grant in the amount of $450,000. Written confirmation should be received shortly.

Resident Trooper: Elaine announced the Town's former resident state trooper, Bob Gavell, has retired. Steven Sordi has been appointed to replace Bob and the Town is looking forward to working with him.

Building and Property Commission: Elaine reported this commission is working hard and will assist the Selectmen with capital budget priorities. These may include painting the outside of the town hall and the Boys Club, among other things.

Americans with Disabilities Act: Elaine reported she has appointed Gary Fitzherbert as the ADA coordinator for the Town. She is very pleased with his expertise and he will assist the Town in clarifying policies and procedures. The proposed project of installing an elevator in the town hall will significantly upgrade the building to assist the handicapped.

Ex-Budget Appropriations: Michael Jackson made a motion to approve the asbestos project in the amount of $12,480 and the roll-off projects in the amount of $4,125 through ex-budget appropriations. The motion was seconded by Jack Field and unanimously passed.

Board of Education: Michael reported the Board of Selectmen and the Board of Finance chairmen from the three towns met with the interim superintendent and new business manager and members of the Board of Education for a remarkably constructive discussion. He felt the superintendent and business manager were very professional, knowledgeable and sensible in their approach and were interested in addressing the towns' financial concerns and bringing them to completion.

Auditors: Michael will meet with the auditors to finalize the 2001-02 audit.

Assumption Sheet: Jack reported he and Rex had worked on a revised assumption sheet that should be easier to follow for long-range forecasting. He provided this to the Commission. The Assumption Sheet title will be changed to "Long-Range Forecast." A history of previous budget will be included.

The meeting was adjourned at 6:35 p.m.

Respectfully submitted,
Kathy Gollow, Secretary

September 16, 2002

 Chairman Michael Jackson called the meeting to order at 5:00 p.m.

Present:
Board: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Barbara Brown
Selectman: Elaine Luckey, Nick Solley
Guests: Michael Caroe

Selectman's Report: Elaine reported on the following matters:

Gunn Hill Road: Gunn Hill Road has not been maintained during the winter months; however, it is used during the other three seasons as a throughway from the end of Lake Waramaug to the top of New Preston Hill Road. Recently, two building sites have been approved and the Selectmen reported it has become necessary to upgrade a portion of this road. They are coordinating this with the property owner, who has offered to provide contractor services. Further discussion will be held with the engineer, road foreman, and property owner and this information will be forthcoming. This may require additional funds.

Asbestos Removal - Town Hall Lower Level: Pipes in the lower level are flaking and it was agreed the Selectmen will obtain bids for the removal of the asbestos and the re-insulation of the pipes in all rooms except the Land Use meeting room and bowling alley, where it is unnecessary.

Recycling Container: An additional recycling container is needed at the transfer station due to the increase in plastic recycling. An ex-budget request will be made once a quotation is confirmed.

Registrar Training: At the request of the Secretary of State, the Town has agreed to join in the State's automated system of voter registration. Currently, the registrars have been having a difficult time with the system. Although they have met with the State, they still feel there are problems and have requested the assistance of Kenneth Johnson to remediate the problem with the program, as well as provide computer lessons for them. He has offered to do so at $300/month for 6 month. The Board agreed to utilizing Mr. Johnson's assistance between now and the November election for $600. He will be contacted.

STEAP grants: Elaine and Nick will meet with Peter Talbot in order better define the proposed housing project of the Washington Housing Trust in New Preston. This is required to define costs and to proceed with the application for grant funds to repair roadwork, sidewalks, recreational fields, etc. in the neighborhood. Whether grants funds would be available up front or whether they would reimburse the Town, it was agreed the project should be noted in next year's capital budget and would be presented at town meeting for approval. Elaine felt this STEAP grant may have ample funds available that could also be used for other projects in Town; therefore, additional requests will be included in the grant application. These will be discussed by the Selectmen.

Education Expenses: The Board's discussion continued on the differences of opinion regarding Educational expenditures. Elaine explained she had written to the chairman of the Board of Education regarding the Finance Board's concern that funds that had not been approved for expenditure during the past budget season be returned to the towns. He responded with an explanatory letter as to how and under what conditions money would be returned. Michael reported the chairmen of the Roxbury and Bridgewater Boards of Finance have agreed to obtain a legal opinion to articulate what their responsibilities are with regard to the Region. It is clear that the Board of Finance may have a specific responsibility for Region 12's overall budget and a right to participate in certain contract negotiations. The three towns agreed to fund obtaining the legal opinion and are now awaiting to receive it.

Michael also noted some Board members had responded to the survey on Regional School District Governance presented by the Legislative Program Review and Investigations Committee Survey. After speaking with the counsel for this Committee, Michael indicated we would like to testify if hearings are held. He has also spoken with State Senator Roraback, who indicated there are problems between other towns and other regional school districts as well. Once the opinion is received, he will forward it to Senator Roraback.

Elaine reported the Selectmen had voted to forward a request to the Board of Finance from the Washington PTO Playground Committee in the amount of $2,500 to help in offsetting costs for the new playground. Question was raised as to the Region's priorities in spending money in that they did not pay for the playground but had funds to cover those needed for the former superintendent's retirement. Question was raised as to use of the building after school hours and the Parks and Rec Commission's responsibilities in covering some of the costs involved with the use of the school fields. It was felt this was a matter on which the Town and Region must come to agreement and it is hoped with the new administration these matters can be resolved. It was agreed the PTO Committee had done a wonderful job in raising the funds and the ex-budget appropriation was approved for $2,500 on a motion by Jack Boyer, seconded by Rex Swain and unanimously passed. The Board did note, however, that the regular budget process should be followed by all unless unforeseen circumstances require ex-budget appropriations during the year.

Minutes of July 15: Jack Field suggested "within the approved budgets." Be added to the end of the 7th sentence in the 1st paragraph. All agreed. Minutes accepted.

Treasurer's Report: The Treasurer will be asked to indicate the current rate of interest for each investment account on her report.

Tax Collector's Report: $5,015,178 has been collected as of 8/31/02. Rex will meet with the tax collector regarding the report.

Financial Sheet: Jack Field provided a financial spreadsheet that will include the beginning balance, income, expense and current balance for all accounts in the General Fund, Capital Fund and Town Aid Road funds. He suggested the concept of the current Assumption Sheet is somewhat difficult to follow; therefore, he and Rex will review this for clarity. Financial reports will be provided to the Board earlier. The Treasurer will be asked to obtain interest rates from the bank at an earlier date.

The meeting was adjourned at 6:20 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

July 15, 2002

 Chairman Michael Jackson called the meeting to order at 5:00 p.m.

Present:
Board: Jack Boyer, Jack Field, Robin Hirschfield, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Barbara Brown, Mark Lyon
Selectman: Elaine Luckey
Press: David Lombino, Litchfield County Times

Housing/S.T.E.A.P. Grant: Jack Boyer reported the Housing Trust may be looking for a commitment on behalf of the Town towards the affordable housing project at the Montessori School building in New Preston. It was reported a letter had been sent to the Office of Policy and Management by the Selectmen in May to revise the Town's request for a Small Town Economic Assistance Program grant for $450,000. The revised request included funds to reconstruct and repair sidewalks, a recreation area, and adjacent roads and road surfaces, once the fragile water system that serves the Church Street neighborhood has been repaired. These improvements to the general infrastructure in the neighborhood were planned to complement the affordable housing effort that is being funded by private donors through the Housing Trust. Question was raised whether this grant could have been used for other things as it was felt that housing had driven this issue. It was recognized that the grant could be used in a variety of ways, but the initial responsibility has been the Selectmen's to determine the use of grants, with approvals for use of town funds being voted on at town meetings. It was noted the Board of Finance has the complete charge of finances and the Town's fiscal integrity, while the Board of Selectmen's responsibility is to manage the Town. The original grant application had requested funds to be used toward the purchase of the building for housing and had been submitted by the previous administration. Since those funds were no longer needed, the current Board of Selectmen felt that the funds could be used to enhance this project and upgrade the infrastructure in the neighborhood.

Future Planning: The Board of Finance discussed their fiscal responsibilities and their lack of authority over the regional school budget, which governs approximately 70% of the town's expenses. Recent articles in The Litchfield County Times regarding the fiscal autonomy of the Region noted that this concern is not only felt in the Town of Washington, but also in the other towns of the Region, as well as across the State. The Legislative Program Review and Investigations Committee of the General Assembly has voted to undertake a study of Regional School District Governance. The Finance Board will review this survey and return their comments to the State. The Board felt strongly it is necessary to define their responsibilities and review historical town data regarding budgets as a means of continuing to educate themselves. They noted pressure is also on the Planning Commission as it continues in its work to revise the Town Plan of Conservation and Development. They are facing the task of having to put together a total plan, which includes education, open space and housing. The Finance Board recognized that they have a role in this complicated task and they need to determine how best to do this. They realized this could not be done alone since we are a part of a Region; therefore, it was agreed that Michael will contact the chairmen of the Boards of Finance of Roxbury and Bridgewater to set up a joint meeting to determine if there is common ground. The Board felt they do have some rights and have not been exercising them. It is their obligation to the tax payers to provide them with what budget increases would mean in terms of their mill rate and their taxes and Michael noted this data and its impact has been presented at each budget hearing prior to the town meeting. Jack Field suggested the Board determine statutorily what their responsibilities and options are. It was suggested both town counsel and the Attorney General's office be contacted to insure they are correctly informed about the latitude both the Town and Region have in terms of authority over budget, appropriations of capital funds, etc. They agreed they must find a way to have dialogue with the Board of Ed and to work this out together. The sense of urgency in beginning this study was noted.

Currently, the Board was unaware where the search for a new superintendent stands. It had been implied that others would be involved besides the school board members.

Michael reported Elaine has offered to write to the Board of Education regarding the return of the capital funds to the towns that were not approved for construction of the track. He suggested she also make the Board of Education aware that the Finance Board will proceed to determine their responsibilities with regard to the school budget and that the Board of Ed's participation would be appreciated.

Historical information on the Town and Region's expenditures from 80-81, as well as 90-91 to the present, was provided. It was agreed to add the mill rate and Grand List to this document.

A copy of the Region's bond prospectus for the roof repair will be obtained and sent to members of the Board to show the information used to determine a bond rating. Michael felt it is essential for Washington to maintain a Aa rating. Jack Field also suggested discussion be held as to how big a fund balance the Town should carry. The town's auditor has reported there are several reasons to have a fund balance, not only to cover one month's anticipated expenditures, but also to cover major unexpected items or a possible deficit in tax payments. Rating agencies look at this reserve as part as the study of the Town's finance, as well as how much money the Town borrows. Michael felt the Board has always functioned as if to maintain a Aa rating and felt this should be continued and articulated.

Jack Field felt the Board needs structure and policy decision should be made. It was agreed to proceed forward with assumptions. They will be reviewed in depth in September, with more precise guidance as to the historical and future growth rate to the Board of Selectmen.

The meeting was adjourned at 6 p.m.

Respectfully submitted,
Kathy Gollow, Secretary

June 17, 2002

 Chairman Michael Jackson called the meeting to order at 5:00 p.m.

Present:
Board: Jack Boyer, Jack Field, Robin Hirschfield, Michael Jackson, Rex Swain
Alternates: Liddy Adams, Barbara Brown, Mark Lyon
Selectman: Elaine Luckey
Press: David Lombino, Litchfield County Times
Guests: Peter Tagley

Guest Comments: Peter Tagley suggested the Board make an effort to recapture some of the funds the school board is now holding. He believes these include approximately $321,000 - $134,000, $117,000 and $70,000 from prior year's budgets and anticipated track construction. He suggested the Board review legal parameters as to how long the Board of Education is allowed to hold funds before returning them to the towns. It was noted Bill Stuart, First Selectman of Bridgewater, had previously written to the Region regarding funds (attached). The Board of Finance will verbalize their concerns.

Superintendent Search: The Board noted a consultant has been hired by the Board of Education to assist in the pursuit of a new Superintendent of Schools. In addition, the current business manager of the Region will also be leaving the District. The First Selectman had been requested to suggest a representative from the Town for a search committee, which she did. Thus far, however, no further contact has been made. It was felt an open meeting should be held in all three towns to get input from the citizens as to what they are looking for in a superintendent. It was recognized that only the Board of Ed members are eligible to vote on this position.

Minutes: Minutes of the May 20 and 23 meetings were accepted as submitted. Future minutes will be e-mailed to members to save on postage and paper.

Tax Collector's Report: Accepted as submitted.

'98 Suspense List: The Board reviewed the Suspense List in the amount of $46,985.80 submitted by the Tax Collector. It was agreed to notify the Tax Collector that the Board felt certain names on the list should be pursued further for payment. Concern was noted over the large number of students on this list from the International College of Hospitality Management who have not paid their motor vehicle tax. It was agreed to have the tax collector prepare a list of the students and notify the school of the high percentage of students. It was suggested the school might require an additional fee from students to help offset costs. It was suggested this list be put on the website or in the press. Jack Boyer moved to approve the Suspense List. Robin Hirschfield seconded the motion and it was unanimously passed.

Financials Reports: Reviewed and approved.

Ex-Budget Appropriation - Work Zone Signs: Jack Boyer made a motion to approve a ex-budget appropriation of $7,000 to purchase municipal safety signs for improved highway safety. This expenditure would be reimbursed through a Federal Highway Work Zone Safety Program grant. It was noted these signs are used only in the work zone for safety purposes and no additional permanent signage would be erected in the Town from the use of these funds. Robin Hirschfield seconded the motion. Motion unanimously passed.

Small Town Economic Assistance Plan Grant (STEAP): Elaine explained that an application for this grant had previously been submitted by former First Selectman Alan Chapin to assist with purchasing the Washington Montessori School building in New Preston for possible housing. Since funds were no longer needed for this purpose, the grant application had been withdrawn and an amended application was submitted for improvements to the road, sidewalk, etc. in this neighborhood. It is not sure if the water lines would be eligible since they are owned privately. It is anticipated this funding will be available in the Fall of 2002.

Auditor: Michael Jackson made a motion to appoint Charles Heaven & Co. of Waterbury as the Town's auditor for the fiscal year ending June 30, 2002. Jack Boyer seconded the motion. Michael felt the auditors are doing an excellent job and the cost remains approximately the same, except for an increase to cover additional requirements in accordance with GASB regulations. The motion unanimously passed.

Assumptions: Michael explained while tax collection receipts and other sources of income have historically resulted in higher receipts than budgeted, it has always been the Board of Finance's policy budget conservatively with regard to income. This has resulted in a fund reserve and a very good Moody's rating. The reserve funds have assisted with such items as fire equipment, senior housing and open space land. While the Board agreed to maintain a 15.75 mill rate for the coming year, Michael cautioned that with the Shepaug lawsuit still unsettled and an increase in project costs expected once the Town's Plan of Conservation and Development is complete, the Town could be facing higher expenses in the future. He felt the agenda for the July meeting should include discussion of the Board's policies in budgeting and the education of the new members as to how they have proceeded in the past. He suggested a ten-year history be reviewed and discussed in conjunction with anticipated future costs. He felt the Board should consider how they will manage these demands and how they will be presented to the townspeople for consideration.

Jack Field provided a reformatted assumption sheet, which offered information in an easier-to-follow format. He noted all education income, whether credits from the school or income received directly by the Town for state education grants, have been netted with the Education expenditures. This, in turn, has reduced the estimated amount of Town income but he felt this was a fairer way of presenting actual Education figures. Jack explained his presentation, noting per pupil percentage is a very sensitive number in this presentation, as are capital expenses. It was noted the Town continues to apply for state grants that will help to offset capital expense.

The Board noted the townspeople have many decisions to make for the future of the Town - the need for housing, open space, the river, a sound budget. Sound planning and innovative ideas to maintain the Town's character will be important. Jack hoped the Board of Finance would help in these decisions on future town issues because of costs involved.

The meeting was adjourned at 6 p.m.

Respectfully submitted,

Kathy Gollow
Secretary

May 23, 2002

 Jack Field called the meeting to order at 9:32 p.m. following the annual town budget meeting in the absence of Chairman Michael Jackson.

Present:
Board: Jack Boyer, Jack Field, Robin Hirschfield, Craig Schoon, and Rex Swain
Alternates: Liddy Adams, Barbara Brown, and Mark Lyon
Press: Brian Pontolillo, Voices

The Board discussed the results of the Town Meeting where the General Fund Budget was approved at $3,063,892 and the Capital Fund budget at $445,990. The referendum held prior to the Town Meeting had defeated the Education Budget presented at $7,259,733, as well as the issue of reconstructing the high school track.

Jack Field presented a Summary Town Budget/Financing Plan, which indicated Cases A through D with mill rates at 15.75, 16, 16.25 and 16.5 and the effect on Fund Balances projected at the end of the fiscal year. (Attached)

Thoughts presented for maintaining the mill rate at its current 15.75 included:

The people have voted down the school budget twice and are indicating sensitivity to increases in their taxes.

There is currently a surplus of $273,000 in the capital fund in excess of projects approved due to grants received for the projects, as well as interest, etc., not included in forecasts.

A 97% tax collection rate is assumed, a degree of conservatism of about $100,000.

The forecast of "Other Town Income" based on the 2001-02 budget is significantly below the actual in 2001-02.

The Board has been able to hold the mill rate lower than previous years' budget increases because of funds held in reserve. It was felt, however, by not keeping as large a fund balance to cushion these increases, voters would realize a mill rate more commensurate with actual budget spending.

The Board anticipates the next proposal for the Education Budget for 2002-03 will likely be presented at a lower number.

Thoughts in favor of a slight increase in the mill rate included:

The Town's education cost is very sensitive to student enrollment percentage in the Region, which may increase again next year. This could reflect heavily on the budget; therefore, it would be wise to increase the mill rate slightly as a hedge against this possibility.

This year's capital spending is much lower than in the past few years, as well lower than what is anticipated for the next few years.

Sooner or later something must be done with the track, and costs for this project will increase "education" costs after FY 2002-03.

It is wiser to increase the mill rate slightly to insure that we have a savings to fall back on rather than have to take out loans. With the current economy, we are in a period of uncertainly.

A minor increase this year would offset a larger jump in the mill rate in the next year - less "shock" effect when taxes do have to be adjusted to higher future spending.

Rex Swain: We have been able to build up a cushion. Because we have had a surplus, we have been able to hold the growth of the mill rate to lower than that of the school budget. If we raise the mill rate now when we don't need to, we will have more of a cushion for next year's school budget. I think it would be better if the school budget goes up 7% that taxes should go up as required to pay for it. The more cushion we build up, the more this tempts the school to spend it. Jack Field: We need to take a realistic view of what education is costing the Town. When we look at an increase of 7.8% it is not an accurate picture. Netted out after all credits, the increase in education cost to Washington is 2.96%. Our cost is very sensitive to pupil percentage allocation, but it should not be expected to change abruptly. The point is that it is prudent for us as a town to be able to see what education is really costing us. If the population is growing in other towns and they need to spend more money to deal with that growth, of which we would share approximately then that is something else again. Jack Boyer: Still, it seems prudent to go ahead with a modest increase, like to 16.0 mills, to smooth the inevitable growth of the tax rate while at the same time, providing additional cushion against adverse events.

The rule of thumb followed by the Board of Finance is to maintain a fund balance equal to at least one and one-half of one month's actual expenses. This is a common practice with most towns and is fiscally prudent and encouraged by auditors. There was no disagreement with this discipline. The issue was that given that the Fund Balance target appears likely to be achieved in the FY 2002-03 budget, should we build in still more conservatism by increasing the mill rate, and at the same time, getting the psychological advantage of gradually approaching the higher rates forecast in future years. Or, should we hold at 15.75 mills for FY 2002-03 and then raise rates as needed to bring current taxes into a relationship to current spending, i.e. - don't collect it until there is a clear need for it.

After further discussion and much consideration, Jack Boyer made a motion to set the mill rate at 15.75 for 2002-03. Craig Schoon seconded the motion. Jack Field noted there appears to be enough conservatism in the 2002-03 budget to provide confidence in being able to meet the Fund Balance target by year's end with the present tax rate. The motion was unanimously passed.

The meeting was adjourned at 10:08 p.m.

Respectfully submitted,

Kathy Gollow
Secretary

May 20, 2002

 Chairman Michael Jackson called the meeting to order at 5:02 p.m.

Present:
Board: Jack Boyer, Jack Field, Robin Hirschfield, Michael Jackson, Craig Schoon, and Rex Swain
Alternates: Liddy Adams, Barbara Brown, and Mark Lyon
Press: Brian Pontolillo, Voices
Guests: Valerie Friedman

Minutes: Jack Field moved to approve the minutes of the April 15th and 23rd minutes as submitted. Rex Swain seconded the motion and it was unanimously passed.

Town Website: Rex Swain has continued to update the Town website (washingtonct.org) and has prompted town offices to provide information on a regular basis. The Board noted their appreciation of his efforts and the Press was asked to get this information to the public. He has asked that referendum results be forwarded to him for inclusion.

Treasurer's Report: The Treasurer's Report was reviewed and accepted as submitted.

Tax Collector's Report: The Tax Collector's Report was reviewed and accepted as submitted. The differences between the Treasurer's Report and the Income Report on tax receipts will be provided for the next meeting.

Monthly Financials: The Fire and Ambulance Tax Abatement will become effective this July. Eleven EMT's and 24 firefighters have qualified, and the Board noted their appreciation of these volunteers. Although this would equate to $35,000, it will actually reduce the income from taxes by approximately $32,000 next year since there were three volunteers who qualified for both departments but are only allowed a maximum of $1,000. An unanticipated surplus of approximately $270,000 was noted in the Nonrecurring Capital account over the past year. This is due to interest income received, insurance reimbursements, LoCIP and Historic Preservation grants and the sale of a pickup truck.

Titus Road Town Garage Site: Discussion was held about the future of this site. It was suggested the existing metal building may have a salvage value. The area is currently used to store materials. Recommendations for the site most likely will be included upon completion of the Revised Plan of Conservation and Development. Elaine Luckey is planning to meet with State D.E.P. officials in the near future to discuss putting the salt abatement issue behind us.

Future Budget Assumptions: Concern over maintaining a realistic and steady mill rate while planning for future years again was discussed. State figures indicate the trend will continue with Washington's student population decreasing. It was felt the Town seems to be currently well funded in the capital account and it was felt it was prudent to have a cushion, but not more than actually needed. However, new buildings at the elementary school level could have a big effect on future budgets, as well as capital items for the Town. It was also noted the Plan of Conservation and Development will be completed by the end of the year. This will most likely include items for consideration for Town expenditures, including open space, buildings, housing, etc. These will all but additional pressure on where funds should be spent and future mill rates of the Town.

Legislative Program Review and Investigations Committee: Recent correspondence was received from the Connecticut General Assembly regarding their recent vote to undertake a study of Regional School District Governance. This committee will evaluate the efficiency, effectiveness, and statutory compliance of selected state agencies and programs, recommending remedies where needed. The study will also evaluate the impact of the current statutory formula apportioning the local share of Education costs among towns that belong to regional school districts and how regional districts are governed by examining their statutory authority and their relationship to local legislative bodies and the State Department of Education. As part of the study, the committee intends to conduct interviews with board members, superintendents, chief elected officials and local board of finance members, as well as through a survey.

The meeting was adjourned at 6:00 p.m.

Respectfully submitted,

Kathy Gollow
Secretary

April 23, 2002

 A meeting of the Board of Finance was held via e-mail to consider a request from the Board of Selectmen to approve an ex-budget appropriation of $7,302.87 be paid to Richard Cable, Sr. in exchange for a drainage easement over the property of Mr. Cable at #2 Sandstrom Road in New Preston. Mr. Cable had agreed that these funds would immediately revert back to the Town to pay for back taxes owed on this property as indicated on the Tax Statement attached to these minutes.

The following votes were received on April 23, 2002 regarding this appropriation:

For: Michael Jackson, Jack Boyer (noting the importance that the funds revert to the Town immediately at the signing of the Agreement, Craig Schoon, Rex Swain, Liddy Adams and Barbara Brown.

Against: None.

Respectfully submitted,

Kathy Gollow
Secretary

April 15, 2002

 Chairman Michael Jackson called the meeting to order at 5 p.m.

Present:
Board: Jack Boyer, Jack Field, Robin Hirschfield, Michael Jackson, Craig Schoon, and Rex Swain
Alternates: Liddy Adams, Barbara Brown, and Mark Lyon
Selectmen: Elaine Luckey, Nick Solley
Parks & Rec: Sheila Anson, Joe Fredlund, Holly Haas, And C. J. Kersten
WCHT: Dick Sears
Guests: Valerie Friedman

Parks & Recreation: Sheila Anson presented the Commission's proposal for construction of a combined bathroom/maintenance/storage building at the Washington Primary School grounds. She noted the Commission has overseen many improvements to the town fields through the generosity of the Town, the Village Improvement Society and the Washington Garden Club. The proposed building is designed to be vandal-proof and well constructed. Anticipated costs are currently at $198,700, which would also include a well and septic system. The Parks & Rec Commission feels a new bathroom has become a necessity in the interest of safety for the children, who would not have to leave the fields and walk through the parking area. It is also the feeling of the school administration that open access to the building is not desirable. The commissioners felt those using the pavilion and the walking path would also use the bathrooms. The Commission is also seeking storage space for equipment, which is currently stored in the Town Hall or in a rented garage. First Selectman Elaine Luckey noted the Selectmen had not disapproved of this proposal but rather referred it to the Board of Finance for consideration.

The Board noted their concern over cost and questioned if an addition or renovation to the bathroom in the school building had been considered. The Commission noted this still would not solve the problem of safety and this area is under water much of the time. The Commission members agreed to investigate available grants, private funding and Region #12 funding to assist with costs. In exchange, the Finance Board will consider the possibility of partial funding for start up costs and/or budgeting funds over a two-year period once further information is received.

River Woods Senior Housing: Dick Sears, chairman of the Washington Community Housing Trust, reported the construction project is progressing well and it is hoped they will be ready by July 1. Besides the assistance given by the Town, the First Congregational Church and individual fundraising, Dick reported the Housing Trust had felt it would be a good idea to get the broad support of town residents for this project by sending a fundraising letter to invite support and interest. They have received approximately $20,000 toward their goal of $60,000. $25,000 had also been approved at the May 2001 town meeting for rental assistance and a discussion was held as to how this would work. It was felt these funds had been approved to assist the Housing Trust in the event they were unable to meet costs due to shortages in rental income. Jack Boyer suggested guidelines be set forth as to how to draw against these funds. Michael did not feel an annual line item should be added to the Town's budget, but rather if further funds were needed, an appropriation would once again be approved at a town meeting. Dick reported the same organization would be used to determine qualified initial renters as was used for the Dodge Farm rental units. They are experienced in these matters and it seems to be working well. Further discussion will follow.

Minutes: Rex Swain noted he had not attended the March meeting as noted. The minutes were approved as submitted.

Treasurer's Report: A suggestion will be made to the Treasurer that longer-term investments might be investigated after reviewing anticipated expenses.

Town Proposed Budget: Elaine Luckey outlined adjustments the Selectmen had made to their previously submitted budget proposal. The insurance areas are the largest proposed increases and higher deductibles will be investigated in an effort to reduce costs. It was agreed an invitation to bid on all insurances would be extended next year. The Selectmen were asked to work on a long-range capital plan.

Newsletter: Jack Boyer made a motion that the Board include a letter in the Town's newsletter regarding the impact the increases in the Education and Town budgets will have on the mill rate over a period of time. Rex Swain seconded the motion. Liddy Adams noted she felt strongly that the Town newsletter was not the place to take a stand for or against the proposed budgets and that opinions should be expressed in the local newspapers. The majority of the Board felt it was appropriate to disseminate this information to the public. All, except Liddy Adams, approved the motion.

The meeting was adjourned at 6:45 p.m.

Respectfully submitted,

Kathy Gollow
Secretary