www.WashingtonCT.org The Town of Washington, Connecticut Minutes: Board of Finance, 2005

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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General information about the Board of Finance

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December 19, 2005

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

Present:
Board: Jack Boyer, Barbara Brown, Jack Field, Michael Jackson, and Rex Swain
Alternates: Liddy Adams and John Allen
Selectmen: Richard Sears, Nicholas Solley
Alternate Liddy Adams was seated in the absence of Craig Schoon.

Minutes: Minutes of the November 21st meeting were accepted as submitted.

Treasurers Report: Report accepted as submitted. It was noted a transfer has been made from the Capital Fund to establish the Open Space Fund. Housing funds remains in the Nonrecurring Capital Account.

Tax Collectors Report: Report accepted as submitted. Jack Boyer questioned a comment in the audit regarding a decrease in property taxes over the prior year (p. 10). Further explanation will be sought from the auditor.

Guests:

Depot Study Report: Planning Commission Chairman Adelaide Roberts reported the Depot Study Report will be circulated among the town commissions for comment. She hoped this would assist the Planning Commission on how to proceed. They are endeavoring to have everyone fully understand what the Study is about and to clear up misconceptions. Comments should be directed to the Planning Commission.

Financials: Accepted as submitted.

Education Steering Committee: Jack Field reported introductory information is being presented in the three towns. This includes costs associated with the various options. Few complications appear regarding the Consolidated concept. However, it has been recommended that consideration be given at this time to replacing the high school track as the septic system for this plan could require it be situated under the track. At the Washington Primary School a portion of the gym may be used for a meeting and lunch room. The financial difference in a new consolidated school and three improved schools would be $10-15,000,000 net to the towns. Future costs would also be reduced with a consolidated school. Jack and Michael feel that the S/L/A/M Collaborative has been of great assistance to the Steering Committee. Jack was commended on his efforts. He strongly recommended that all residents attend the meetings to discuss the projects in depth.

Pension: Rex reported it is the unanimous recommendation of the Pension Committee that the Town fully fund the Pension obligation as soon as possible. Approximately $87,000 is needed to complete this funding, $30,000 in net obligations from prior years and $57,000 for this year due to changes in interest and salary assumptions. The Board discussed possible reasons for this large increase. Michael suggested delaying the deposit until he has a better understanding of the reasons for the increase. He will discuss this with Pension Consultants. The Committee also recommended the Selectmen plan for a contribution of approximately $126,000 in the coming budget cycle. Prior overtime and private duty expenses will be available for the next meeting. Terms of the Plan regarding these and other items will be reviewed. A town meeting will be required to approve the additional funding.

Alternate Appointment: The Board has requested recommendations from the Republican Town Committee for the vacancy in the position of alternate. Jim Brinton, Doug Greene and Joan Lodsin were recommended. Since many of the Board members are not acquainted with Joan, she will be asked to attend their next meeting scheduled for January 27th.

Meeting Dates for 2006 were approved. (attached)

Selectmans Report:

Cell Tower: Dick reported he has received communication from Verizon regarding the possible leasing of the New Preston firehouse to locate a cell phone tower. The monthly fee offered is $1,800. The Selectmen will begin discussion of the various pros and cons at a future meeting.

Health District: Dick reported the State is mandating each town have a full-time health district and are promoting that all towns join health districts. Currently, the Town contracts for these services through the Town of New Milford. The State will provide a $5,000 grant as an incentive to join a district. Dick is reviewing an offer from New Milford, as well as other area districts. He will report his findings at a later date.

The meeting was adjourned at 6:05 p.m.

Respectfully submitted,
Kathy Gollow
Secretary

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November 21, 2005

[revised 12/10/05]

Vice Chairman Jack Field called the meeting to order at 5:00 p.m. in the absence of Chairman Michael Jackson.

Present: Board: Jack Field, Mark Lyon, Craig Schoon and Rex Swain
Alternates: Liddy Adams, Barbara Brown and John Allen
Selectman: Richard Sears
Treasurer: Linda McGarr
Guests: Valerie Friedman

Minutes:

October 17 Meeting: Rex Swain made a motion to approve the minutes with the following amendments:

Employee Compensation: Change: "thirty-party" to "third"-party."

STEAP Grant Project: Add clarification that the appropriation approved in the previous fiscal year for proposed STEAP grant projects was engineering, legal notices, etc. required for estimating project costs. Expenditures made have been submitted for grant reimbursement. Jack Boyer seconded the motion. Motion unanimously passed.

November 17 Special Meeting: Craig Schoon made a motion to approve as submitted. Mark Lyon seconded the motion. Motion unanimously passed.

Treasurer's Report: Linda reported she will sign a Corporate Resolution Agreement with the First National Bank of Litchfield for use of a computer to access the Town's accounts. Treasurer's Report approved as submitted.

Tax Collector's Report: Tax Collector's Report approved as submitted.

Mr. Jackson arrived at 5:10 p.m.

Financial Reports: Items reported included:

Unanticipated town hall boiler repair costs. Parts were under warranty. Labor extra.

Town debt service on the firehouse is paid semi-annually, with principle and interest payments made in November, and interest-only paid each May. Payments are scheduled to continue until November of 2013.

Accounts maintained separately from the General, Capital and Town Aid Funds include Parks and Recreation, Senior Center and Judea Cemetery. All are audited annually.

Grants: Small Cities Grant funding is being received in a timely manner for the Town Hall Elevator and Handicap upgrade project, which is nearing completion. The Church Street Improvement project is also nearing completion. Expenses submitted to DECD for STEAP grant reimbursement for this project have been approved and funding has been activated. Dick noted unanticipated costs that exceed the bids for these projects, include asbestos and lead removal in the town hall and additional processed material needed for Church Street. These will also be submitted for reimbursement through the grants. Grant income will be outlined in more detail.

Audit Report: A DRAFT audit report was previously submitted for review. The Board questioned one item on page 10 noting property taxes had decreased by $23,081 from the previous year. It was felt this was possibly due to an unusually high collection of Prior Taxes in the previous year. This will be clarified. Audit was accepted as submitted with minor typo changes.

Pension Contribution: Rex Swain reported that the Pension Committee recommends the Town make the increased pension contribution as reported by Pension Consultants, Inc. While the Committee recognizes this contribution is higher than the budgeted line item, it continues to feel the changes made to interest and compensation assumptions are more in line with actual numbers. They had been comfortable changing the assumptions as they had been told the change would not make a measurable difference in the deposit. Pension contributions as a percent of payroll are over 15% and prior contributions have resulted in approximately $30,000 in arrears from previous years. Discussion was held as to reasons for this increase. The inclusion of overtime, employees reaching eligibility, increased number of employees were all additional considerations. Police overtime was discussed at length. Rex noted much of this overtime is reimbursed to the Town through fees charged for services. He suggested some of these fees could be deposited to the Pension fund. Jack Boyer suggested it would not be fair to remove all overtime, but a cap could be considered. It was agreed to request a complete analysis of the reasons for the increase. Michael will contact Pension Consultants.

Education: Jack Field reported the Inter-municipal Agreement presented to and approved at the 11/15/05 town meeting was intended to procure and pay for professional consulting needed to get to the point of referendum on the issue of school buildings. Several items in the Agreement were subsequently amended, as provided for in the agreement, to clarify and limit the agreement to the objective of the Agreement of the Towns' jointly procuring and paying for consulting services. An additional amendment to the agreement as approved by the Washington Town Meeting was to clarify the understanding between the towns that the allocation of all costs associated with the school facilities projects being developed would continue to be allocated to the towns according to the Region formula for prorating shares in proportion to the total number of Region students from the towns. There had been discussion of changing that method of allocation, short of de-regionalization, so that each town would pay for the costs of its own school. However, the Region believe this would not be possible legally, and Roxbury and Bridgewater opposed the idea as well. Our conclusion was that this change could not be implemented short of formal de-regionalization. So it was concluded that the best thing to do was to accept that amendment and to proceed with the project.

The Steering Committee has been impressed with S/L/A/M Collaborative as a consultant, who has been engaged by the Region to assist in compiling and checking for consistency information needed by voters to make the choice for a consolidated building or separate school buildings. They will work with the Steering Committee and the teams up to the final vote. A meeting has been scheduled for November 22nd at the high school, at which time SLAM will kick off its involvement in the process. While there is a great sense of urgency, it is agreed that it must be done right. Following the kick-off presentation, there will be an intensive period of meetings with the teams. It is anticipated this challenging schedule will be completed with a referendum on February 7. SLAM will initially review Ed Specs with the Region, then size the schools for the programs needed and the student populations anticipated and develop site plans. They will get a sense of the problems, seek clarification on questions and remain impartial. They will attempt to produce information needed by an informed public that will go to a binding referendum. They will look at all avenues of state aid. Mark Lyon noted the original plans had been drawn up to get state reimbursement. He questioned if S/L/A/M will look at these differences. Jack felt they absolutely would. The public will be provided both construction and operating costs, plus non-financial pros and cons, for the choices of maintaining separate town schools or building one consolidated school for the Region.

Rex questioned how the amended agreement voted on at town meeting would be handled. Mark Lyon reported that individual towns paying for their own renovations had been explored by the Region in the past. It had been found that this was illegal if done through the Region.

Judea Water Company: John Allen reported that the Judea Water Company will be offered to the Town for sale. After a thorough review with engineers and contacts from various towns, he reported he had received no encouragement. While the initiative to investigate this matter had been for control of the water company by the Town, it was felt this should not be pursued because of the lack of knowledge of running a water company, its affect on a very few people, and the poor state of the infrastructure. John felt that one of two reputable water companies will be put in charge by the State and that this change would not be a problem for users.

Appointments/Resignations:

Mark Lyon, who was recently elected to the Board of Selectmen, submitted his resignation as a regular member of the Board of Finance. The Board unanimously moved Barbara Brown from an alternate's position to fill this seat on the Board. Recommendations will be sought from the Republican Town Committee to fill the now-vacant alternate's seat. They will be requested to provide recommendations prior to the next meeting.

Election of Officers: Mark Lyon made a motion to re-elect the current slate of Michael Jackson as Chair and Jack Field as Vice-Chair of the Board. Craig Schoon seconded the motion. The motion was unanimously passed.

The meeting was adjourned at 6:24 p.m. (A record!)

Respectfully submitted, Kathy Gollow, Secretary

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November 7, 2005

Special Meeting

Present: Board Members: Jack Field, Michael Jackson, Mark Lyon, Craig Schoon

Alternates: Barbara Brown and John Allen

Selectmen: Richard Sears, Nick Solley

Guests: Valerie Andersen, Valerie Friedman

The Special Meeting was called to consider an appropriation of up to $33,400 to assist in evaluating the feasibility of constructing and/or renovating elementary school properties in each town and alternatives. This appropriation would be Washington's share of total costs that are not to exceed $75,000. Jack Field reported it had become clear that the task teams needed professional assistance to complete this major task. The funds would be used to hire S/L/A/M Collaborative as a consultant for $30,000, with the remainder available for other pre-referendum work needed by the Steering Committee. A town meeting will be scheduled for November 15 to consider this appropriation.

Jack also reported that, in addition to this request for funds, an Intermunicipal Agreement has been prepared that would establish a Committee to oversee the expenditure of these funds. The Steering Committee, for whom these funds are intended to provide pre-referendum support, has been authorized to reach an agreement with the Region 12 Board of Education wherein the Region will call for a referendum to decide on one option, including plans and estimated construction and operating costs, from the alternatives of separate schools for each town and a consolidated school for all towns. The proposed Intermunicipal Agreement would also be considered at the Town Meeting.

Jack noted that another concept suggesting that each town pay for the construction or renovation of its own building had been suggested in the original proposal by the Chairs of the 3 Boards of Finance on 6/15/05. In this concept, each building would be constructed to meet Board of Education requirements, as well as to satisfy each Town's wishes and needs for their own building. This concept has not been discussed by the Steering Committee, but the First Selectmen of the Towns of Bridgewater and Roxbury feel that construction costs should be paid according to the Regional formula. Eventually, the First Selectmen had agreed to proceed on that basis to keep the project moving. It had been suggested that legal counsel be engaged to discuss these options, but again, the Steering Committee has not yet discussed this issue.

The Washington Board of Finance agreed it was not worth postponing the referendum for another year over this issue, because of the costs that would be lost to inflation, and it was felt each town would benefit equally from the Steering Committee's overall project. The cooperation exercised between the Board of Education and the three towns, and between the towns, in coming thus far was recognized.

The Board continued discussion, and it was agreed the Town would be willing to pay its share of the $75,000 based on the student population formula. It was felt, however, that the final sentence in Section 7 of the proposed Agreement was not pertinent to the approval and management of this expense. Mark Lyons made a motion that the Board approve an expenditure not to exceed $33,400 for the evaluation, and that the final sentence in Section 7 of the proposed Agreement, stating "All costs including bids and construction to be paid in proposition to the student population allocation under the then current school year" be deleted from the proposal to the Washington Town Meeting. Michael Jackson seconded the motion. The motion was unanimously passed.

The Town Meeting is scheduled for November 15 at 7:30 p.m. The meeting was adjourned at 6 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

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October 17, 2005

Present: Board Members: Jack Field, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams, Barbara Brown and John Allen

Selectmen: Richard Sears, Nick Solley

Treasurer: Linda McGarr

Guests: Rico Melaragno, Charles Heaven & Company, auditor

Valerie Andersen, Valerie Friedman

2004-2005 Audit Notes: Mr. Melaragno discussed the audited figures with the Board. The Board agreed to make transfers and additional appropriations as follows:

General Government:

Building Department: Transferred excess revenue over budget in the amount of $78,363 to Building expense.

Authorized additional appropriation of $18,000 to the Building Department budget to cover additional expense.

Public Safety:

Police: Transferred excess revenue received from Private Duty Coverage in the amount of $84,489 to Police expense.

Highways:

General Maintenance: An over-expenditure in General Maintenance is due to unexpected costs that include culverts and catch-basins. Transferred excess revenue over budget in the amount of $38,744 (FEMA grant received for unusual storm expenses) to General Maintenance expense. Authorized additional appropriation of $16,000 to General Maintenance budget to cover additional expenses.

Winter Maintenance: Authorized an additional appropriation of $2,000 to the Winter Maintenance budget to cover additional winter storm cleanup.

Other Expense:

Assessment Appeals: Additional unforeseen legal and appraisal costs were not anticipated in this Board's original budget. The Board confirmed the recoding of these unusual expenditures to "Other Expenditures" and authorized an additional appropriation of $12,705 to cover costs.

Additional appropriations had also been approved during the fiscal year for an electrical upgrade to the town hall in the amount of $4,730, pavilion bathroom project expenses in the amount of $20,000, and additional duties by the Zoning Enforcement Officer in the amount of $2,565.

STEAP Grant Project: It is expected expenditures will be reimbursed by the State of Connecticut and this should be accounted for as a separate department on the approved budget. An additional appropriation of $20,000 had been approved during the fiscal year.

Excess revenue in the General Fund of $4,791 was realized for the year. Jack Field made a motion to approve the above stated adjustments to the General Fund. Michael Jackson seconded the motion. The motion was unanimously passed.

It was also noted the funds approved for Open Space Acquisition had been transferred to a newly-established Open Space Fund. Housing funds will remain in the Capital account as a vehicle has not been set up to transfer funds to a separate Housing Fund.

Minutes: Motion made by John Allen and seconded by Mark Lyon to accept the minutes of the September 14 meeting as submitted. Motion unanimously passed.

Treasurer's Report: Linda McGarr reported she had closed out one CD due to the low interest rate. Treasurer's Report accepted as submitted.

Tax Collector's Report: Accepted as submitted.

Primary Schools Task Teams: Jack Field updated the Board on the continuing efforts of the various teams. Renovating Washington Primary, building new schools in Roxbury and Bridgewater, and constructing a consolidated school at Shepaug are all still being studied. A proposal for a combined school for Bridgewater and Roxbury seems to have receded since the Booth School property is not large enough and the distance to the only new property available is too great for Bridgewater students to travel. The study teams are aspiring to hold a referendum near the end of the year for direction toward either maintaining three separate schools or one consolidated school. Additional referendums would be required to give the authority to develop a specific project and to construct. The committees are seeking a joint agreement from Board of Education and the three towns to support a final decision that would fulfill the required specifications and objectives of all. Counsel will be sought to determine if construction costs would be paid on a regional or individual town basis. The latter could allow each town to choose items they deem important to their building. Jack noted there are still some big issues to be addressed but the volunteer teams continue to put much time and effort so that all avenues will be considered carefully. A series of meetings will be scheduled for each town to present the proposals. Valerie Friedman commended Jack Field's exemplary efforts on behalf of this project. The Board wholeheartedly agreed.

Judea Water Company: John Allen reported that he and Michael Jackson will pursue less costly engineering estimates to review the Judea Water Company than those they have received. He reported the water company owner has notified the State of his intention to abandon the system. When this takes place, the State will assign another company to run the system. The owner will entertain offers from the Town, but John reported he has thus far not received positive reactions to this possibility due to the liability involved, the need for a superintendent, etc. It is estimated approximately one week/month of employee services would be required to run the system. They will continue to examine this proposal.

Employee Compensation Committee: Dick reported the following had been appointed to the Committee: Valerie Friedman, Larry O'Toole, Roger Cannavaro and Kathy Gollow. He requested an appointment from the Board of Finance. A comparison of employee compensation, insurances, pensions, vacations, etc. with other towns and the private sector, as well as long-range assumptions about growth in costs in each category, goals and achievement had been requested. Valerie Friedman reported after reviewing the task as presented by the First Selectman, she felt it would require the expertise of professionals and was beyond her scope. The Board recognized the difficulty in comparing job classifications from town-to-town-to-private industry and the need for a non-biased committee, etc. It was agreed the task could be too far-reaching for this committee. Valerie felt it would be a great opportunity to have it done by a third party and the scope could be enlarged to see if we are heading in the right direction. Rex noted it is difficult to compare to the private sector. While the Town's benefits are better, the wages are lower. He felt if we had a problem now, he thought we would know it. Mark Lyon felt a thirty-party analysis would be a good idea, as we are not competing with other municipalities for good employees, as you may be in the private sector. Liddy Adams suggested the Board remember some employees are not hired but are elected officials. John Allen will discuss this matter further with the First Selectman.

Pension: Rex reported a teleconference had been held with Pension Consultants, Inc. Their recommendation included a larger deposit to the Pension Fund be made than had been anticipated in the budget. While the Pension Committee had suggested revisions be made to the assumptions used to more correctly reflect current salaries and interest for the 05/06 year, the actuary had not felt this was cause for the increase. In addition to being somewhat under-funded already, the income as reported on the employees' federal tax forms was higher than anticipated and included overtime. It was agreed the Pension Committee would meet to discuss this further and the Chairman of the Board of Finance would be asked to attend.

Selectman's Report:

CHORE Service: Dick explained the Chore Service is a program that matched trustworthy workers with resident who needed help with housekeeping, shopping, yard work and minor home repairs. Recently, due to the success of the program, the service had to be reduced from thirteen to eight town in the northwest corner, leaving five towns without this well-reputed service. The First Selectmen from Morris, Goshen, Warren, Litchfield and Washington recognized the need for this program to continue, and are working to begin another program for these towns. While, plans are being made for the program to be self-sustaining, there may be need in the future for some financial assistance. He will report further at the next meeting.

Health District: Dick reported the State is pressuring smaller towns to join health districts. We currently contract with the Town of New Milford for these services, which has worked very well. New Milford is considering establishing a health district, as are other areas in the vicinity. The State has forwarded a $5,000 grant to the Town as an incentive to begin investigating this. Dick will investigate various available programs.

Retirement Incentive: Dick reported the Selectmen have requested the Board consider an offer to employees who have reached retirement age in appreciation for their years of service to the Town. This would include a one-time offer to employees whose retirement age and number of years of employment equal 85. An amount not to exceed $2,000 would be paid by the Town toward one year's supplementary health insurance. There are currently five employees eligible, but it was anticipated that not all would take advantage. Craig Schoon made a motion to accept this proposal. Discussion continued as to whether a precedent was being set, if something more comprehensive should be considered, or whether it should be made a policy. As there was no second to the motion, the matter was not continued.

Transfer Station: Elizabeth Gugel has been hired by the Town to replace Warren Tompkins at the transfer station. Mr. Tompkins has recently retired. The Selectmen notified the Board that this line item will exceed the budget due to additional coverage that was required prior to Mr. Tompkin's retirement.

The meeting was adjourned at 7:05 p.m.

Respectfully submitted, Kathy Gollow Secretary

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September 14, 2005

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams and John Allen

Selectmen: Richard Sears, Nick Solley

Treasurer: Linda McGarr

Guests: Valerie Andersen, Valerie Friedman

Minutes: Minutes of the July meeting were amended as follows: Nonrecurring Capital Report: Add underlined: A surplus in the Capital Fund over the past several years has resulted from interest, grants, and completed or canceled projects. For example, funds for bridges that have been approved have not been spent. Minutes approved as amended.

Treasurer's Report: Linda will close two more accounts due to the low interest rate. While the local money market accounts do not realize high interest rates, she will maintain these as they are linked with her STIF accounts. Treasurer's Report accepted.

Tax Collector's Report: Accepted as submitted.

Pension: The Pension Committee had requested that the assumptions used for calculating the annual deposit to the pension fund be revised to better reflect the actual increase in salaries and the growth in interest income. (5.0% to 3.5% for salary increases and 7.5% to 5.5% for the interest rate.) These changes resulted in a suggested contribution of $126,128, which is larger than the budgeted line item. Pension consultants will be contacted to determine how the 2004 salary was derived, if overtime is included, and if payroll costs reimbursed to the Town by outside contractors should be included. Wages as reported on W-2 forms have been used in the past.

Financial Reports:

General Fund: Secretary noted income of $8,247 shown as In Lieu of Taxes - Education had been received from Dodge Farm and should be In Lieu of Taxes - Housing. A FEMA grant in the amount of $38,744 has been received to assist with unanticipated winter storm expenses occurring last January. It was agreed to wait for audit before considering year-end transfers.

Capital Fund: Anticipated grants were discussed. The Small Cities Grant of $500,000 and the STEAP grant of $450,000 are included in the total anticipated grants of $1,077,342, as well as other smaller grants. As the elevator/handicapped renovations to the Town Hall have progressed, Small Cities grant funds are being received. The Church Street Improvements project will begin during the next few weeks. STEAP grant funds will be used for this. Other grants are anticipated once specific projects are completed. i.e. Local Bridge grants, LoCIP, etc.

Update on Primary Schools Project: Jack Field reported five teams have been working on the various options regarding the three primary schools for the past several months. Following are current team ideas:

Washington: Space is not an issue; however, it will be reallocated. Actual plans have not as yet been drawn. Important general decisions have been made. We will not renovate to "new," but will repair what needs to be repaired and renovate what needs to be renovated. i.e. the heating system.

Bridgewater: Decisions are being made whether to raze the existing school and build new or to renovate. The latter does not seem likely because the location of the existing school does not use the existing space well.

Partial Consolidation between Bridgewater and Roxbury: They are getting to the point where they are ready to get cost analyses for the various cases. The Turner estimates have been reviewed and more information is needed. A second opinion, layouts, drawings and estimates will be necessary. People with architectural backgrounds from the three towns may be sought for assistance.

Consolidation: This committee has just gotten launched and will meet Board of Ed specifications. Meanwhile, the Steering Committee (First Selectmen, Bd/Finance Chair, Bd/Education Chair and Sup't. of Schools) will proceed. In order to keeps the project moving forward and to cover necessary costs above and beyond the many hours of volunteer work, it was suggested each member town provide $5,000. This would enable each town to have a major say on their individual building and would satisfy the Towns and the Board of Education's educational requirements. The Committee felt the final presentation must be acceptable to the people of the three towns.

Jack Boyer questioned if each Town could pay for the improvements and maintenance for its own facility. In this way, if a town wanted something extra, they could have that and pay for it themselves. The Steering Committee is trying to segregate these things, with a cost center for each, before a decision would be made as to who should pay for what.

Another issue is the 30% state funding. The original plan said to renovate to "new." If it is not in the best interest of the three towns and the Region, they are preparing to leave state aid out of the equation. The Town of Kent proceeded in this direction and then went back and obtained funding after.

Michael Jackson made a motion to approve an ex-budget appropriation of $5,000 for miscellaneous expenses incurred by the Steering Committee. Jack Boyer seconded. All in favor.

At the next meeting of the Steering Committee the three towns will meet to insure that equitable quality of education would be provided and that each town would know the cost. It was also suggested that each Town could take on the responsibility of the maintenance of its own facility.

Judea Water Company: John Allen and Michael Jackson reported they had met with Ron Black, owner of the Judea Water Company, which is for sale. They felt it should be determined if it would be in the best interest of the townspeople if these assets were controlled by the Town rather than someone else. They suggested the assumptions offered by Mr. Black and his consultant be studied further as it was felt water will become a more precious commodity in the future and it was felt this opportunity would not come again. Concerns were raised over liabilities that could be incurred by the Town, maintenance would be required, billing, meter reading, quarterly testing, etc. It was felt liabilities would be covered through insurance and the purchase could be made with a note against future liabilities. It was agreed to have a consultant determine if there are problems within the system and that estimated future costs would depend on these findings. Valerie Andersen suggested problems could be eliminated first as part of the sale and a utility document could be established, which would be separate from Town. Also, that consultant costs could be applied to the purchase price. Jack Boyer made a motion to approve an ex-budget appropriation of $17,000 to determine the state of the water company's assets. Mark Lyon seconded the motion. Motion unanimously passed.

Employee Benefits: A report on current employee benefits was provided to the Board by the secretary. (attached) It was agreed to ask the Selectmen to appoint a 5-7 member committee of local residents and employees to review all aspects of Town compensation and to gather comparative information from other towns and industry. While the Committee may make recommendations, the Board of Finance would ultimately do the analysis from the information gathered. The Board recognized that some positions may not be comparable from town to town, but felt this was a look forward.

Capital Fund - Surplus: The surplus in the Capital Fund was discussed. This surplus has resulted mostly from interest and grants received over several years, as well as funds remaining from prior years' completed projects. It was felt these are excess funds and should be available to spend. An historical report of income will be provided to the Board for review.

Tax Abatement on Farm Machinery and Equipment: Selectman Solley reported he had met with the Town's Assessor regarding the potential impact to the Town of a recently enacted statute allowing additional reductions in assessments of farm machinery and an initial reduction on farm buildings. In an effort to preserve open space and to assist farmers, the Open Space Preservation Committee of the Conservation Commission has requested this be presented for consideration. The Town currently offers a reduction of $100,000 of assessed value of farm machinery if specific criteria are met. This proposal would increase the farm machinery exemption to $200,000 and would allow a $100,000 reduction in farm building assessments. It was estimated this might reduce tax revenues to the Town by about $6,000-8,000 for approximately 16-20 currently registered farmers. First Selectman Sears presented a draft ordinance, noting he would like to present this for consideration at the town meeting scheduled for October 3rd. Opinions differed on whether we would be piling another exemption on what is already a very generous taxation or whether it was a symbolic gesture that would have a minimum fiscal impact but would show that the Town's heart is in the right place. Jack Boyer made a motion that this be presented for consideration at the next town meeting. Craig Schoon seconded the motion. Vote: In favor: Jack Field, Jack Boyer, Craig Schoon, Mark Lyon. Rex Swain abstained. Motion passed.

CT Coalition for Justice in Education Funding: Dick reported he had received a request for $2,500 for membership in this organization. They have endorsed the intent of their legal counsel, the Yale Law School's Education Adequacy Clinic, to file suit on behalf of public school children against the State of Connecticut, arguing that the State has failed to meet its constitutional obligation to provide an adequate education and to ensure equal educational opportunity for all. No motion was made to join.

The meeting was adjourned at 6:50 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

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July 27, 2005

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

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams, John Allen and Barbara Brown

Selectmen: Richard Sears

Treasurer: Linda McGarr

Minutes: Minutes of the May 5 hearing, May 5 meeting, May 19th and June 20th meeting were approved as submitted.

Treasurer's Report: Linda reported she had recently closed out three money market savings account and shifted funds to STIF and TRIM funds for a higher return. It was noted STIF's percentage had increased from a 1.84% to a 3.27% interest rate in six months. The Board noted their appreciation. Treasurer's Report approved.

Tax Collector's Report: The Tax Collector was commended for the excellent job she had done in collecting overdue accounts, as well as current taxes. Tax Collector's Report approved as submitted.

Financials:

General Fund: Year-end cash-basis figures resulted in higher than anticipated Income and Expense of approximately +$700,000. Historically, if a positive net balance occurred, it has been used to cushion the impact on the mill rate. This has resulted in the mill rate remaining at 11 for the past three years. Specific areas that exceeded budgeted income included: Interest, taxes, building inspection fees, police private duty fees, ECS grant and town clerk. Specific areas that exceeded budgeted expense were: Building, Police and Highways, some of which income offsets expenses. It was agreed that transfers would not be made until discussing these with the auditor.

Nonrecurring Capital: Jack Boyer made a motion to transfer $980,004 from the General Fund to the Nonrecurring Capital Fund to cover capital expenses approved at the May, 2005 town meeting. The motion was seconded by Michael Jackson and unanimously passed. A surplus in the Capital Fund over the past several years has resulted from interest, grants and completed projects. Specifics will be identified. The Board will determine what can be transferred back to the General Fund. All remaining funds have been committed for particular projects and are not available.

Selectman's Report:

Depot Study Phase I: Dick Sears reported on the positive public engagement and dialogue received at the recent Depot Study charrette. The study is proceeding well and addresses traffic concerns, parking, the Plaza, and future development in the Depot area. The Planning Commission will follow through and present the final results to the Town. This will assist in providing proper controls for future developers at a point when development may become imminent. Phase II would encompass a major DOT study of traffic, speed, and infrastructure studies of pedestrian transportation and septic.

Primary School Construction: Dick, Michael and Jack Field reported on the positive reaction received for future planning for the primary schools. After meeting with First Selectmen and Finance chairmen from the three towns, the Board of Education chairman and the Superintendent, it was agreed that the First Selectmen would each establish a task force from their town to gather data needed for this project. An additional task force group will also be established to study the possibilities of consolidation and to consider various options, including the relocation of certain grades, a review of the Shepaug campus, an independent site, and the Washington Primary School. These committees will then meet with a school committee on July 27, 28 and August 2 to discuss the best solution for meeting the required educational objectives, as well as the financial objectives of the towns. They will try to pull together as much information as possible prior to meeting on September 20, 21 and 22. Their objective will be to have a proposal finalized for consideration at the time of the November elections. Thus far, all are cautiously optimistic and encouraged. Michael noted they would also like to involve the people who recently worked on the Washington Montessori School building to get the benefit of their advice. Ball park numbers and the resulting increase in taxes will be studied. Jack Boyer reminded the Board that public money may not be spent on advocating the outcome of a referendum. The Board agreed.

Other Issues: Jack Field suggested the Board review other issues also:

1. Building inspection fees and police private duty. Dick will review the Building Inspection contract and the private duty fees this summer. It was noted building rates have risen since the last contract was written.

2. Tax abatement on community housing projects. Jack will continue to work with Bill Fairbairn will represent the Housing Trust for further work.

3. Employee Benefits: Jack suggested the total compensation package be reviewed to determine the cost of all benefits per employee. This should include salary, health and dental insurance, pension, co-pays, deductibles, share of premium costs, savings plans, etc. and would be compared to neighboring towns. It was suggested consideration be given toward changing certain elected positions to appointed positions, as well as a part-time comptroller.

Pension: Rex reported the Pension Committee had received a letter from former First Selectman Alan Chapin suggesting the Town contribute more to the pension fund on behalf of the employees. He noted 1993 had been the last time the retirement plan had been amended and recommended increasing the annual benefit from 1.5% to 2% of the average monthly compensation and developing a buy-out option. The Pension Committee was asked to advise Dick Sears on their thoughts.

Judea Water Company: The Judea Water Company, who currently owns three separate sites in Washington (Wykeham Road, the Depot and Quarry Ridge), has been offered for sale. Their only responses have been from very large water companies. The Board voiced concern about local control by a major utility and felt this may not be in the best interest of Washington. The purchase would include the land on which each well is situated. The Board will investigate this matter further.

The meeting was adjourned at 6:25 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

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June 20, 2005

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

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams and John Allen

Selectmen: Richard Sears

Treasurer: Linda McGarr

Guests: Valerie Andersen, Valerie Friedman

Minutes: Minutes of the May 5 budget hearing, May 5 budget meeting and May 19th regular meeting were tabled until the LKJuly 18th meeting.

Treasurer's Report: Linda will be transferring funds from the Capital and Town Aid Investment accounts at FNBL to the STIF account for a higher interest rate. She will maintain the FNBL General Fund Investment account as the tax collector deposits funds on a regular basis to this account. Treasurer's Report approved.

Tax Collector's Report: Jack Boyer noted taxes receivable look lower than in prior years. Tax Collector was commended on this.

Financials: May 31, 2005 and anticipated year-end income and expense reports were reviewed. It is anticipated that expenses may exceed budget by $200,000 due mainly to Winter Maintenance, Building Inspection fees and legal fees. Income may exceed budget by $900,000 due to tax collections, Region #12 fund balance return, penalty fee of $30,000 due to premature sale of property in forest/farm land, etc.

Housing Trust: Jack Field reported he had spoken with Matt Murgio, chairman of the Housing Trust, regarding the preparation of forecasts for the Trust. Once complete, the Finance Board will review to determine what the financial impact would be and what type of assistance could be offered in lieu of tax abatements. Michael will contact Matt to have information for the next meeting.

Selectman's Report:

Employees Health Insurance: Dick Sears reported health insurance costs would increase by 18.14% to continue the current coverage. In an attempt to lower costs, higher co-pays will be instituted. In addition, he asked the Board to consider three options:

Option #1: Employees would contribute at a specific rate toward their coverage, which would result in an 8.57% increase; Option #2: Employees would contribute at a slightly lower rate, which would result in an 11.62% increase; and

Option #3: An HMO program with the addition of a hospital and out-patient surgical deductible of $1,500/individual or $3,000 max/ family. This would result in a decrease -8.84%. Dick asked the Board to consider that the Town would provide coverage on an as-used basis for this deductible. If an employee were to use the hospital or out-patient services, they would receive invoices for the $1,500 deductible. These would be forwarded through the Town to the agent for a review of the hospital charges. Once approved, they would be returned to the Selectmen's office for payment from the Town insurance line item. It was suggested this would assist in determining the Town's actual use of the insurance, which is currently not available due to HIPPA regulations. The Town's agent did not feel the Town would exceed the budgeted line item and could end up with a surplus to be used to offset future costs.

Dick reported higher co-pays and a switch to an HMO have been instituted over the past two years in an attempt to reduce costs; however, they continue to rise. Lengthy discussion followed and it was agreed to approve Option #3 with certain provisos: That data on plan members be provided, that the town's plan be compared with those of other towns and that a five-year plan be developed over the next few months. Michael Jackson moved the Board approve Option #3, including the provisos. Jack Boyer seconded the motion. Motion unanimously passed.

Assessor's Report: Rex Swain reported the Assessor had provided sales comparisons to assessments for the past year. The comparisons were divided into three sections: sales higher than $1.5 million, sales between $500,000 and $1.5 million, and sales under $500,000. When compared to the 70% assessment value used by the Town for taxation purposes, the report showed the highest properties were assessed at 57% of their sales price, the middle properties were assessed at 60% of their sales price, and the lower properties were assessed at 70% of their sales price. The Assessor will be asked to provide this report on an ongoing basis.

Primary Schools: An analysis of the present situation regarding the Region 12 primary schools and recommended plans for "Where to go from here" was prepared by Jack Field, Molly Stratton and Ed Tierney, vice chair and chairs of the Boards of Finance of the three towns. (A copy of this analysis will be filed with these minutes.) Jack felt strongly that a joint effort and discussion between all three towns must take place on the future of these buildings, as well as on the continued membership in the Region. The analysis suggested each town take on the responsibility for its own school as to what will be built and how it will be operated. Dick Sears felt a Task Force should be established to discuss consolidation, separation, and the mechanics for possible changes. He has invited the Chairman of the Board of Education, the First Selectmen and the Finance Chairmen from the three towns to meet on Thursday, June 23rd to discuss the issues. Jack noted the importance of giving the public the opportunity to vote on these issues and felt the discussions and a proposal should be complete before the November election in order to realize the greatest voter turnout. De-regionalization of the primary schools was also discussed. The mechanics would be that all three towns would have to vote to agree de-regionalize by majority vote. Valerie Andersen noted she is very pleased with the direction the Boards from the three towns, as well as the Board of Education, are taking in working with one another. The renewal of the leases on the three buildings must also be investigated. Washington's runs out in October of 2007. Liddy Adams voiced her concern that Washington voters had the lowest voter turnout. It was also recommended was that the 4th and 5th grade option be put back on the table. Michael also noted a review of the middle/high school building should also be done.

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

Respectfully submitted,

Kathy Gollow, Secretary

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May 19, 2005

Chairman Michael Jackson called the meeting to order at 8:40 p.m., immediately following the Town Meeting.

Present: Board Members: Jack Field, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams, John Allen and Barbara Brown

Selectmen: Richard Sears and Nick Solley

Press: John Addyman - Voices

2005-2006 Mill Rate: Consideration was given to comments received at the town meeting, the unknown Education budget, the unknown school construction project costs, the importance of maintaining the Town's Aa bond rating, and using anticipated year-end fund balances. While some Board members felt the Town is carrying a huge fund balance, it was noted by others that prior fund balances have been used to maintain a more even mill rate. They agreed there should be a justified reason if the mill rate were to be raised. School construction costs were not anticipated to occur before the end of the next fiscal year.

The Board unanimously agreed that the mill rate would remain at 11 for the 2005-2006 fiscal year and that year-end fund balances could be used to offset an increase.

The meeting was adjourned at 9:15 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

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May 5, 2005

Budget Hearing

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoen and Rex Swain
Alternates: Liddy Adams, John Allen
Selectmen: Richard Sears, Nick Solley
Treasurer: Linda McGarr
Press: John Addyman - Voices; D'Ambrosio, Waterbury Republican

General Fund Budget: First Selectman Sears presented the proposed General Fund budget in the amount of $3,437,636. He explained the lengthy process the Selectmen had followed to create a solid and lean budget that advances the basic values of the Town, rewards the workers and is not excessive in any way. This represents 3.7% increase over the current year's budget. New positions include a part-time housing clerk to assist the Housing Diversity Committee and the position of a part-time Building & Property Coordinator, which was recommended strongly by the Building and Property Commission. An average 3% payroll increase is proposed; however, due to the two new positions, the overall payroll increased by 5.6%.

Capital Fund Budget: Selectman Solley presented the proposed Capital Budget in the net amount of $980,005, noting the Selectmen anticipate capital expenses with a long-range plan extending out five years. Over the past ten years, capital budgets have ranged from $450,000 to $1,600,000, with an average of $945,000 for the past ten years. This year's capital budget is divided into:

Road projects, including large capital improvements to specific roads and bridges: $335,000;

Vehicles and Equipment, including trucks, scheduled for replacement every 10-15 years and large equipment on a 10-12 year basis: $370,005;

Buildings and Properties, including Open Space and Housing funding, as well as other Town needs: $275,000.

Finance Calculations: Jack Field presented a Summary of the Town's Strategic Plan and the Town Budget/Financing Plan (attached). The Strategic Plan calculated mill rates using base assumptions, which indicated a mill rate of 12.11. Adding new initiatives that are proposed as part of the Capital and General Funds, a mill rate of 12.48 is indicated. These new initiatives focused on the areas of municipal projects, open space, housing and education and included both the General and Capital Funds extending to 2010. Municipal Projects included a part-time municipal facilities manager, tax relief for seniors, and other Capital Fund projects. Open Space included $150,000 to be used for seed money towards land acquisition. Housing included an annual contribution of $50,000 toward low equity, single family homes, a generator and other smaller items. He also included additional tax abatements for affordable housing that exist or are being considered. Education costs for renovation projects, as well as restoration of the high school track, were not included in the 05/06 year but are anticipated in following years.

The Summary of the Town Budget/Financing Plan presented various mill rate cases for the current year. Assumptions for tax collections were increased from 97% to 98%. If all new incentives are included, an increase in the mill rate from 11 to 15 could be anticipated within five years. Jack cautioned that current assumptions were used and should not be taken as precise, as things do change. These assumptions allow the Board to be mindful of what is happening now and in the future.

Michael thanked the Boards for their efforts and willingness to participate in the process, which make a significant difference in how well they can plan for the future. He noted the Board also considers assumptions from the Washington Financial Planning Model as an additional aid in budgeting (attached). The Board has drawn on reserve funds in past years to even out increases in the mill rate. As more projects face the Town in the future, the use of reserve funds allows the Board to cushion some of the tax increase.

Comments:

Valerie Friedman questioned why a net number is used in the calculations for capital expenses. It was noted it is the Board's policy that project s offset by anticipated grants will not be done unless grant funds are secured; therefore, a net number is used.

Peter Tagley questioned if the annual reimbursement from the Region is included in the Board's calculations. This is included and shown line 49 of the Town Financial Planning Model.

Peter noted the school budget will most likely be approved at a lower number than anticipated. This could result in some savings.

Peter also stated he is against a tax abatement and felt it could set a precedent. While the Housing Trust has provided their financials, Michael will meet with the chairman to discuss these in more detail. Dick Sears reported the Selectmen had approved the tax abatement item at their January 13th meeting and had put it on the agenda for the Town Meeting on May 19th.

Peter voiced his concern that it is difficult to speak to a specific item at a town meeting. He noted is appreciation of the Board's general conservative budgeting and hoped they would continue in that tradition.

Fire Company: Dick Murchison, Assistant Fire Chief, requested the Board reconsider the Fire Company's request for $161,160 for SCBA equipment. Using available grant funds, plus the trade-in of current equipment and a three-year payment plan, would relieve the need for funding in this year's Capital Plan. He will meet with the Selectmen to discuss this proposal in detail for the future.

Respectfully submitted,
Kathy Gollow, Secretary

Meeting

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoen and Rex Swain
Alternates: Liddy Adams, John Allen
Selectmen: Richard Sears, Nick Solley
Press: John Addyman - Voices

2005-06 Budget: Rex Swain made a motion that the $10,000 of Town Aid Road funds used to offset the General Maintenance section of the budget be removed. Jack Boyer seconded the motion. This motion would set the General Maintenance section of the budget at $449,682 and the total General Fund budget at $3,437,636. Motion unanimously passed.

Tax Abatement: The Board discussed the Housing Trust's request for a tax abatement on their Church Street property, which would reduce their overall expenses and allow them to apply these funds toward maintenance at Dodge Farm. The Town is currently assisting with an application for a Small Cities Grant to help with these costs. Concern was raised that a vote on tax abatement for the Church Street complex had been put on the agenda for the May 19th town meeting before being considered by the Finance Board. It was agreed the Trust's finances relating to all three of their properties should be reviewed prior to this vote being taken. Michael has scheduled a meeting with the chairman of the Trust to analyze current and future costs and discuss their assets as the Board has done with other entities receiving Town funds. It was also pointed out that the residents do not receive assistance from a tax abatement, but rather that it would assist the Housing Trust directly, as a non-profit organization. Some members of the Board were uncomfortable with the principle of abating taxes and felt this could set priorities for Town in the future. The Board may meet prior to the town meeting to discuss this further. The Board has the authority to assist with funding with an ex-budget appropriation during the year if warranted.

Budget: Jack Field made a motion to present the General Fund budget in the amount of $3,437,636 and the Capital Fund budget in the amount of $980,004 to the May 19th town meeting. Mark Lyon seconded the motion. Motion unanimously passed.

Respectfully submitted,
Kathy Gollow, Secretary

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April 25, 2005

Special Meeting

Chairman Michael Jackson called the special meeting to order at 5:00 p.m. to continue discussion on the proposed 2005-06 General Fund and Capital Fund budgets.

Present: Board Members: Jack Boyer, Jack Field, Michael Jackson, Mark Lyon, Craig Schoen and Rex Swain

Alternates: Liddy Adams, John Allen

Selectmen: Richard Sears, Nick Solley

Guests: Valerie Friedman

Auditor: Jack Boyer made a motion to appoint Charles Heaven & Co., Inc. as auditor of the Town accounts for the fiscal year July 1, 2004 - June 30, 2005. Jack Field seconded the motion. Motion unanimously passed.

General Fund Budget: The Selectmen presented the following changes to the General Fund budget of $3,370,635 previously submitted:

012 Zoning: Decrease legal fees from $7,500 to $6,500.

014 Inland Wetlands: Decrease legal fees from $4,500 to $4,000.

016 Conservation: Decrease map consultant from $1,000 to $500.

017 Town Hall: Decrease electrical repairs from $1,500 to $1,000.

025 Fire Co.: Decrease line #3-vehicles & equipment maintenance from $29,000 to $28,000.

025: Fire Co.: Decrease line #8-Award program from $25,000. to $13,500.

032: Winter Maintenance: Increase winter sand from $10,000 to $60,000 - delete town aid road comment.

032: Winter Maintenance: Increase salt from $6,000 to $26,000 - delete town aid road comment.

These changes would increase the proposed General Fund budget to $3,425,636, which is a 3.4% increase over the 2004-05 budget.

The proposed changes were discussed at length. The Selectmen were asked to review the following line items:

Zoning: Consultant. To determine what zoning issues would require the use of a consultant in addition to legal advice.

Health Insurance: Actual costs are not as yet available. The Selectmen had been informed to anticipate a 15% increase; however, they submitted a 10% increase, which would require reductions in the current benefits and/or employee co-pays to stay within this range. A lower percentage increase was suggested. Cost will be reviewed in detail when received.

Fire Company: Award program. An annual contribution of $22,500 has been made since the inception of this Program. This amount had been set to provide funds for those firefighters who had given years of volunteer service prior to the Plan's establishment. This has been accomplished. In an attempt to reduce budget costs, the Selectmen suggested this amount be reduced from $22,500 to $11,000. This would allow $500/firefighter as outlined in the Plan for each of the 22 firefighters currently qualified by the fire company. The Board of Finance reinstated the $22,500 annual contribution in appreciation of the firefighters' service to the Town.

Assumption Sheets/Summary Formats: The Board reviewed the annual assumption sheets, as well as two Summary Formats provided by Jack Field: The Town Strategic Plan Financials (2 pp) and a Summary of the Town Budget/Financing Plan for 2005-2006. (attached) The Town Strategic Plan anticipated the impact on the budget at the current mill rate (base case), as well as with the addition of new initiatives. New initiatives include municipal projects, open space, housing, tax abatement incentives and Education debt service over a five year period A mill rate of 12.11 was indicated when new initiatives were not included, while 12.48 was indicated when they were included. These mill rates did not reflect using current reserve funds to offset costs. While the impact of the new initiatives for the 2006 budget is not big, it will have a much greater impact on future budgets. The Town Budget/Financing Plan presented five cases of mill rates.

The Board discussed the proposed school construction projects and voiced concern over maintaining the Town's current credit rating. It was felt the current proposal set forth for $38,000,000 is too high and the $20 million range may be more readily acceptable to the public. Jack Field cautioned each year's delay could prove costly and every effort should be made to bring this matter to a successful conclusion.

The following dates are scheduled for budget consideration:

May 3: Education Referendum - 6 a.m. to 8 p.m.

May 5: Town Budget Hearing - 7:30 p.m.

May 19: Town Budget Meeting - 7:30 p.m.

May 19: Finance Meeting immediately following Town Meeting to set mill rate.

Budget: Jack Boyer made a motion to approve the Selectmen's proposed budget of $3,437,136, which includes the reinstatement of the Fire Company's Award Program to $22,500, plus any further reductions the Selectmen may determine. Jack Field seconded the motion. Motion unanimously passed.

Suspense List: Jack Boyer made a motion to approve the Tax Collector's Suspense List for the 2001 Grand List in the amount of $9,640. Mark Lyon seconded the motion. Motion unanimously passed.

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

Respectfully submitted,

Kathy Gollow, Secretary

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April 18, 2005

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

Present: Board Members: Jack Boyer, Michael Jackson, Mark Lyon, Craig Schoon and Rex Swain

Alternates: Liddy Adams, John Allen, Barbara Brown

Selectmen: Richard Sears, Nick Solley

Guests: Planning Commissioner members: AddieRoberts, Winston Fowlkes

Matt Murgio, chairman, Washington Comm. Housing Trust

Valerie Friedman

Depot Study: Planning Commission members reported proposals ranging from $40,000-$100,000 had been received from six firms for this study. Wilber-Smith Associates of New Haven was chosen. This is the only firm that allowed the Town to consider the project in two phases. Phase I would include the conceptual planning of transportation and land use development in the area, while Phase II would consist of a series of additional tasks that would provide greater detail and additional planning services that address the items more completely. The cost for Phase I is proposed at $29,900, inclusive of direct expenses. $35,000 had been approved at the May, 2004 town meeting for the study. Phase II has been estimated at a total of $49,000; however, tasks could be chosen separately for specific costs, including drafting zoning regulations, roadway operational analysis, streetscape renderings, inventory of waste management systems and inventory of public utility systems. The Board reported another $35,000 is included in the 2005-06 capital proposals to be earmarked for Phase II. Once Phase I is completed, the Planning Commission will return to explain how they propose this additional funding would be spent prior in Phase II.

Tax Abatement: Matt Murgio, chairman of the WCHT, requested the Board consider abating the taxes on the Housing Trust's Church Street property, as well as the Dodge Farm property. There are not sufficient reserve funds to cover maintenance that is needed at Dodge Farm. Jack Boyer reported the abatement of the taxes at Dodge Farm would assist greatly with these costs. This payment in lieu of taxes currently paid on this property resulted from an agreement that was made between the Trust and the Town at the time of construction; however, it could be rescinded by the Town. It was agreed the Trust would provide an aggregate financial statement of their three properties for the Board's review prior to considering this request.

Treasurer's Report: Linda McGarr has asked the Town's auditor to review the new investment account she proposed using at the last meeting. Treasurer's Report accepted as submitted.

Budget: The Selectmen and Board continued discussion on the proposed budgets. The following items were discussed and remain under consideration in the General Fund:

The use of Town Aid Road funds to offset sand and salt costs in the Highway budget. Nick Solley felt it would distort the actual budget costs in this area.

Discussion on the benefits and/or margin of error resulting from the use of GIS mapping. Dick Sears reported the Conservation Commission feels this would be very useful for local soil and tax maps.

An historical analysis of the Fire co. award program was requested for the next meeting.

The amount of police coverage in the future that the Town will require.

The excellent job done by the Emergency Management coordinator.

The use of a contractor for winter snow storms as opposed to increasing the length of highway employees trip routes.

Culverts - do they belong in capital or general operating account? Ask auditor for opinion.

Pavilion Maintenance: In an attempt to reduce costs, it was felt current town employees could lock/unlock each day, as well as maintain.

Animal Control Officer - increase in # of hours from 20 to 22/week. Does more.

Newsletter. Opinions varied as to its necessity. Some felt costs too high. First Selectman felt it is an excellent way to communicate with the public. Website may be solution in future. Important to keep people advised of what is going on. Suggested cutting to two/year.

The following items were discussed and remain under consideration in the Capital Fund:

Whether the addition of $200,000 in new initiatives (open space and housing) should have an impact on the Selectmen's annual capital projects. Nick provided information that the average capital expense over the past eleven years has been $945,000. Both Boards recognized that some years are going to be higher than others. It was agreed the answer must be from the taxpayers as to what they are willing to pay. This will be reviewed further for future budgets when time allows.

Special Meeting: The Board will hold a Special Meeting on April 25th to continue discussion of the budget. A forecast will be provided at that meeting.

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

Respectfully submitted, Kathy Gollow, Secretary

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March 28, 2005

Special Meeting

Chairman Michael Jackson called the special meeting to order at 5:02 p.m. The purpose of the meeting was to receive the Board of Selectmen's proposed 2005-06 General Fund and Capital budgets.

Present: Board Members: Jack Field, Michael Jackson, Mark Lyon and Rex Swain

Alternates: Liddy Adams, John Allen

Selectmen: Richard Sears, Harry Wyant

Guests: Valerie Friedman

Press: E.L. Lefferts, Litchfield County Times

Alternates Liddy Adams and John Allen were seated in the absence of regular Board members Jack Boyer and Craig Schoon.

Shepaug River Agreement: An informational meeting on the Shepaug River Agreement will be held on April 12 at 7:30 p.m. at Bryan Memorial Hall in conjunction with the Town of Roxbury. Michael will check with Attorney William Bright regarding the date for a town meeting to follow.

2005-06 Budget: First Selectman Sears presented the initial 2005-06 General Fund proposal in the amount of $3,467,456 and the Capital budget in the net amount of $973,005. The Selectmen are considering a general 3% increase in employee wages in the various departments; however, consideration is also being given to increasing part-time clerks to 6% in appreciation for their efforts. Two new staff positions are also being considered: A clerk for the Housing Diversity Study Committee for twelve meetings/year at a cost of $570 (under 001) and a half-time Building and Property manager at a cost of $26,000 for salary, plus mileage and expenses (under 048). This position was strongly recommended by the Building and Property Committee, who has been monitoring the town buildings and properties on a volunteer basis. It was felt this position is sorely needed and would include some maintenance and repair work, thus alleviating the need to hire private contractors for smaller jobs. Dick commended the town employees for their efforts and felt the Selectmen have supported them in their salary, benefit package and good equipment. Total salary increase is approximately 5.5%, including the two new positions. Increases in heating fuel, diesel fuel and gasoline play a major part in much of the increase in the budget; however, a savings in electric costs is anticipated because of a recent CL&P audit of town buildings, as well as a savings in phone costs. A copy of the draft budget is attached to these minutes.

Budget summary. The General Fund increases from $3,311,789 to $3,467,456 - 4.7%. Current Education net is 6.86%, due, in part, to an increase in the Town's student ratio from 43.66% to 44.52%.

Additions include:

001: Selectmen: Housing Diversity Committee clerk. Also, proposed to join Council of Small Towns.

006: Building: Anticipated net expense against revenue will be reviewed. Difficult to determine due to unknown construction values. Fee is based on percentage of construction value, which building inspector lowered in previous years.

008: Elections: While workers will receive 3% increase, total budget is lower due to number of elections and referenda anticipated.

011, 012, 013, 014: Planning, Zoning, ZBA and Wetlands: Reorganization of personnel duties in land use area. Land Use Coordinator will now add Wetlands secretarial duties to her Planning and Zoning secretarial duties, while her zoning enforcement duties will be covered by the Wetlands Enforcement Officer. It was suggested legal fees might be negotiated for a lower hourly rate in these areas.

015: Historic District Commission: Added costs for digital inventory of properties.

016: Conservation Commission: Moving into GIS system. Work almost done in completing assessor's maps into geological survey. Added mapping consultant and reduced updating maps and legal fees. Question raised if this information is available elsewhere.

019: Liability and Property Insurance: Final year of three-year contract. Effectiveness of consultant review for prior year was noted.

020: Accident & Health Insurance: Increase anticipated at 10%. Actual costs currently not available but will be reviewed in detail once information is available.

025: Fire Department: Increase in utilities and vehicle and equipment maintenance.

026: Police: Police force had been increased in prior year from two to three full-time positions in anticipation of future retirement of one officer. Once retirement occurs, the need for three officers in the future will be discussed.

027: Emergency Management: Increase in E911 - Litchfield County Dispatch costs to $10.88/capita.

029: LWA: Reduction in repairs & equipment.

030: EMT Awards: Fees for fire company/EMT's consultants will be reviewed.

031, 032 Highways: Increase in fuel costs, contracted services, culvert costs, sand, salt and plow blades. Check with auditor to determine if catch basins and culverts are considered capital or annual maintenance items. An anticipated FEMA grant is expected to offset winter storm costs of approximately $36,000. Whether this will be received by fiscal year end is unknown.

035: Transfer Station: Tipping fee increased from$62 to $65.50/ton and 2700 to 2,830 tons, based on recent experience. Hauling increased from $14.40 to $15.20/ton. New line item for consultant to provide schedule for all monitoring requirements for all town sites, i.e. transfer station, town garages, beach sites.

036: Recycling: Hauling increased from $195/ton to $215/ton @ 95 tons. Comparison of income and expense costs for demolition will be done.

037: Paramedic Services: $5.50 to $5.57/capita based on population of 3,697.

038: Health Department : Town is currently contracted with New Milford for health services. Proposed budget remains same. State is pressuring towns to join health districts. While a higher reimbursement rate would be available from the State, it would be more costly. Current situation is working well.

041: Parks & Recreation: Increases included:

Selectmen approved eighteen hours/week of twenty-one requested for Director.

Lifeguards line shows larger increase than actual due to current year's inadequate budget.

New pavilion will require custodial care from April through October. Commission sponsors many programs that do not require funding from taxes. Some Finance members felt $90,000 is not much to spend on recreation in comparison to a $3.5+ million total budget.

Michael noted points well made. Assure that programs and parks are run in a sensible and efficient way.

042: Senior Center: Increase costs in newsletter as sponsorship is not as available as in the past to defray costs.

048: Annual Repairs: Includes new part-time Building and Property manager and mileage.

052: Social Services: Programs include Susan B. Anthony and Meals on Wheels - worthwhile assistance to town residents.

Capital: The capital budget were discussed.

Road Program: $430,000. $100,000 of Town Aid Road Funds will be used to offset costs, reducing this part of the budget to $330,000. Selectmen's policy is to use Town Aid grant funds equating to approximate amount received annually for this purpose. Fund balance in this account will be used as needed for unanticipated projects as required.

Vehicles & Equipment: $385,080. $15,075 in grant funds available. Includes two highway trucks, plows, mower, second half of fire vehicle replacement, fire company hose, radios and police radios.

Building and Property: Includes funding for land acquisition for open space and housing, town hall generator, beach area architecture, firehouse roof and wall, and office reorganization in town hall. The elevator project will be completed this summer and the Bryan Hall trustees may be willing to assist with costs for needed upgrades and reorganization in offices. It was suggested it might be best to talk to an outside consultant for a fresh view.

Total Capital budget submitted at $973,005. Jack Field suggested a total of $750,000 in capital items had been anticipated. The Board noted there is approximately $200,000 of new initiatives included that had not been anticipated last year.

Town Aid Road Funds: The Selectmen anticipate receiving $97,960 from the State for the 2005-06 fiscal year. Approximately $100,000 will be used to offset the Capital Road budget. Remaining funds will be used, if necessary, for unanticipated General Maintenance road costs.

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

Respectfully submitted,

Kathy Gollow, Secretary

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March 21, 2005

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

Present: Board Members: Jack Field, Michael Jackson, Mark Lyon and Rex Swain
Alternates: Liddy Adams, Barbara Brown
Selectman: Richard Sears
Treasurer: Linda McGarr
Firefighters: Mark Collins, Dick Murchison. Matt Somerset and Duncan Woodruff
Gunn Library: Phil Farmer
Open Space Committee: Dan Sherr
W.C. Housing Trust: Matt Murgio and John Millington
Housing Diversity Committee: Bill Fairbairn, Jeff Anderson, Simone Rourke and Don Brigham
Guests: Valerie Friedman

Alternates Liddy Adams and Barbara Brown were seated in the absence of regular Board members Jack Boyer and Craig Schoon.

Fire Company:

General Fund: The WVFD's request for $91,000 for the 2005-06 General Fund was presented. Increased utility, equipment and maintenance costs precipitate the increase in these line items for next year. The Fire Company was asked to present these General Fund expenses in detail to the Board of Selectmen.

Capital Fund: The following capital requests were made:

SCBA Equipment (self-contained breathing apparatus): Current apparatus is 6-10 years old and has malfunctioned on several occasions. 28 Scott SCBA packs were requested at a gross cost of $161,160. This could be offset by $11,275 from a FEMA grant and a trade-in of current equipment of $17,472 for a total cost of $132,413. Options for leasing are available.

Hose: Over 1,000 ft. of a total of 13,000 ft. of hose failed NFPA standards last year. Some of the hose was manufactured in the 1980's. Cost for cotton hose was quoted at $26,775 and rubber hose at $17,705, including related hardware. Fire Company felt rubber hose would be satisfactory. Suggested long-range plan include $5-7,000 annually for hose replacement.

Portable radios: Portable radios to be used by firefighters, especially when entering emergency incidents, were requested. Immediate need for 15 radios, with total goal of 28. Cost per unit: $1,125. Fifteen: $16,875. Total cost: $28,137.

Replacement of Engines 5 and 7 with a combination pumper/tanker: Engine #7 is 23 years old and due to be replaced at an estimated cost of $275,000. Current engine #5 is 16 years old. Chassis is obsolete and vehicle was involved in serious accident several years ago. Reliability of apparatus and cost associated with maintenance are questionable. Estimate for replacement is $375,000. WVFD suggests replacing both with one pumper/tanker. Cost savings would be substantial at an estimated $410,000 as compared to $650,000. Lease financing figures were provided. Would not need to include in budget this year if lease option taken. It was felt the purchase of this vehicle would bring the fire apparatus up to date, with engine #3 remaining as the oldest piece of apparatus and usable for another seven years. Historically, a vehicle has been replaced approximately every three years over the past thirty years. The WVFD was asked to provide an up-dated long-range capital plan for vehicles and information as to what part they could assist with financing. They are currently financing approximately $80,000 toward the new Rescue vehicle. The Town approved $137,500 toward this vehicle in the 04/05 fy, with the remaining $137,500 proposed for the coming 05/06 fy. The firefighters also reported a recent grant would include replacement of rapid intervention team packs, which include turn out gear, special training, SCBA fitted masks and miscellaneous equipment, including harnesses, ropes, etc. They will apply for another grant to deal with the exhaust system in the firehouse.

Gunn Library & Museum: Phil Farmer, chairman of the Board, requested $108,000 for the 05/06 fiscal year. Town funding equates to approximately 29% of the Library budget as compared to other towns, where funding may be as high as 100%. The Town's contribution has increased at approximately 3%/year. The Library anticipates their budget will grow at a faster rate. Staffing and benefit structures are expected to remain fairly constant, except for the possible funding of a defined benefit pension plan for one long-term employee. The remainder of their income is raised through contributions, trust funds and fund-raising events. Endowment funds are used only if needed. The Board noted their appreciation of the fine services afforded by both the Library and Museum and their appreciation to their many volunteers.

Open Space Committee: Dan Sherr reported the Committee's main goal is to preserve the rural character of Washington. Their primary responsibility is to implement that part of the Town's Plan of Conservation and Development regarding open space. To gain clarity as to how to proceed, the Committee will:

Monitor and report progress in achieving the TPCD goal of 30% permanently preserved open space by 2015.

Advocate for community commitment to open space and processes that encourage owners to permanently protect their properties from development.

Partner with Town commissions and land trusts to insure "management" of the open space resources to achieve the social goals of the TPCD. As the Open Space Committee is not fully equipped to do this alone, partnership with other organizations is being considered.

The Open Space Committee requested:

The Town reallocate the real estate conveyance tax proceeds from the General Fund to the Open Space Acquisition Fund.

Deposit $.165/$1,000 of the Grand List or $150,000 annually to the Open Space Acquisition Fund

Establish an ordinance to provide tax relief to property owners who place permanent development restrictions on their properties while meeting other open space preservation criteria.

The Board discussed the Land Acquisition Fund established for the eventuality that the Town's contribution would serve as a catalyst and that private contributions, state grants and developer's payments in lieu of open space would raise the major funding. Funds would be managed separately and would not be spent without specific town approval. The Open Space Committee would evaluate opportunities that may become available. This Committee would make a determination and present this to the Conservation Commission for consideration. If approved, the proposal would proceed through the Town's various processes as outlined in the town ordinances and state statutes. The Open Space Committee plans to present a full five-year financial plan to the Board later in the year. Legal costs, monitoring, public use of the properties, transfers of easement and ownership are all areas that will need review.

Washington Community Housing Trust: Matt Murgio, chairman of the WCHT, reported on the three properties owned by the Trust. Recent census figures show 79% of the occupants of the Dodge Farm apartments and 75% of the Riverwoods Apartments have ties to the Town. Availability, size of apartment, applicant's current need, and credit rating all play a part in determining occupancy for the apartments. After ten years, the Dodge Farm apartments are in need of upgrades. The State has capped the rents that the Trust is allowed to charge resulting in their falling low in their reserves. The Town has offered to assist in applying for a Small Cities grant to help with these repairs, with the Trust supplying the matching 10% required. The River Woods apartments have a tax abatement from the Town for the life of their debt service. Their mortgage expense is approximately 61% of their operating expense, thus not leaving an excess of funds for reserve. 16 Church has a mortgage of $40-50,000, leaving little remaining funds for writing new projects. Suggestion was made that the aggregate cash flow of the three properties might be considered to cover expenses and/or the Small Cities grant could be used for all three properties. Mr. Murgio requested the Town consider a tax abatement for the 16 Church Street property and that the Payment In Lieu of Taxes (P.I.L.O.T.) program for the Dodge Farm complex be rescinded and replaced with a tax abatement. John Millington noted the importance of providing limited equity single family homes. He felt the Town must assist the Housing Trust in this endeavor.

Housing Diversity Committee: Bill Fairbairn presented a draft of this Committee's report with the following recommendations:

The Town create a Town Housing Commission to plan for the housing needs of low/moderate income people, including single family homes, rental units, assisted living and congregate homes. The Town's many needs are currently addressed by private entities and a Town Housing Commission would be accountable to the Board of Selectmen. This volunteer group could possibly require a manager in the future.

A ten-year plan be developed for a minimum of 96 units of affordable housing. In addition, longer range plans be initiated as well. Priority should be given to single-family units.

The Town immediately address a "Parcel Program" for limited equity single-family homes.

The Town appropriate $50,000 per year for the next ten years and adopt a contingency plan for an even larger appropriation during this time period to address the legal pressure from the Connecticut Affordable Housing Land Use Appeals Act.

Treasurer: Linda McGarr reported she had been investigating a Certificate of Deposit Account Registry Service (CDARS) through a local bank for investment purposes. This program would provide full FDIC insurance on deposit amounts larger than $100,000 and a higher interest rate than currently available through State accounts. The Town's auditor will be asked to review the program.

Minutes: Minutes of the 2/28 regular and special meetings were approved with the correction to change the word "repair" to "renovate to new" regarding the three primary schools.

CT Municipal Consortium for Financial Responsibility: Jack Field reported on this coalition of local officials across the state advocating for local initiatives to increase political leverage on state mandates and their influence on local property taxes. Jack Field made a motion that the Washington Board of Finance support this group. Rex Swain seconded the motion and the motion was unanimously passed. (attached)

Use of Town Vehicle by First Selectman: The Board received the Board of Selectmen's policy regarding the First Selectman's use of a town vehicle as they had requested. The 1999 Ford Crown Victoria currently used for business purposes by the First Selectman will continue through December, 2005. Fuel for said vehicle will be available at the town garage and will be charged to the Selectman's account. Beginning January 2006, the First Selectman will receive $200 each month to cover transportation expense for the personal use of his vehicle.

Board of Education Progress of Building Projects Meeting: The Board was invited to attend a meeting on March 28th at 7 p.m. at the Regional High School for an update on the progress of the Region 12 building projects. All Selectmen, Boards of Finance members and PTO Presidents from the three towns were asked to attend. This meeting will follow the Board of Finance Special Meeting scheduled for March 28th at 5 p.m. to review the Selectmen's proposed budgets for 2005-06.

The meeting was adjourned at 7:30 p.m.

Respectfully submitted, Kathy Gollow, Secretary

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February 28, 2005

Special Meeting

Vice-Chairman Jack Field called the Special Meeting to order at 4:00 p.m. The purpose of the meeting was to consider current Town litigation. Jack reported representatives from Region 12 would not be attending the regular meeting scheduled for 5:00 p.m. due to weather conditions.

Present: Board Members: Jack Field, Mark Lyon, Rex Swain, Michael Jackson (via phone)

Alternates: John Allen, Liddy Adams

Selectmen: Nicholas Solley, Harry Wyant

Guests: Ed Matthews, Bill Bright (via phone)

Alternates Liddy Adams and John Allen were seated in the absence of regular Board members.

The Board entered Executive Session at 4:01 p.m. to discuss legal matters.

The Board re-entered the Special Meeting at 5:56 p.m.

The Special Meeting was adjourned at 5:56 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

Regular Meeting

Vice-Chairman Jack Field called the meeting to order at 5:57 p.m.

Present: Board Members: Jack Field, Mark Lyon, Rex Swain

Alternates: John Allen, Liddy Adams

Selectmen: Nicholas Solley, Harry Wyant

Alternates Liddy Adams and John Allen were seated in the absence of regular Board members.

Education: The proposed discussion on the primary school construction projects was not held due to weather conditions. Jack Field reported costs and designs for these projects have not been finalized and the school administration is revising the educational specifications. The Board of Education plans to proceed to present the proposal to repair the three buildings at a referendum. Discussion ensued as to whether the public had ever voted to proceed with the proposal to repair the three buildings. It was felt it had not been formally considered by the three towns, but rather that representatives from the three towns had personally felt the towns wanted to maintain their individual schools. The Board of Education is not amenable to consider alternatives at this time and will proceed as planned. Jack Field will contact the Superintendent of Schools to reschedule the meeting for discussion.

Parks & Recreation Bathrooms: It had been suggested that this project might be delayed until definite plans for the Washington Primary School have been approved. However, the Selectmen have re-extended an invitation to bid on this project, with bids due on March 10th. The project has been reduced in scale in terms of construction and materials.

Request for Ex-Budget Appropriation: Consideration was given to the Selectmen's request for an appropriation for $4,730 toward installation of energy-saving devices in the two town garages, the town hall and the senior center. CL&P has inventoried the buildings and presented costs and savings. It is felt the costs for the town hall and senior center would be covered in the current year's budget but additional funds would be needed to cover the town garages. Mark Lyon made a motion to appropriate a sum not to exceed $4,730 as an ex-budget appropriation for the installation of the energy saving devices in the town garages. John Allen seconded the motion, which was passed unanimously.

Minutes: John Allen mad e motion to approve the minutes of the January 24th meeting as submitted. Liddy Adams seconded the motion. Motion unanimously passed.

Treasurer's Report and Financials: The Board reviewed these reports. It was noted $15,186. will be transferred from the Nonrecurring Account expenditures to the General Fund Account expenditures to amend expenses for the New Preston STEAP project.

Budget: It was agreed that a special meeting would be called for March 28th at 5 p.m. to receive the Selectmen's preliminary draft budget for the 2005-2006 fiscal year.

Old Business:

Selectman's Auto: Rex Swain requested the Board of Selectmen present a written proposal reporting on the future use of the Selectman's vehicle and/or compensation for travel expenses, i.e. mileage reimbursement or a monthly stipend. This will be presented at the budget meeting.

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

Respectfully submitted,

Kathy Gollow, Secretary

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January 24, 2005

Present: Board Members: Jack Boyer, Jack Field, Mark Lyon

Alternates: John Allen, Liddy Adams

Selectmen: Richard Sears, Nicholas Solley

Guests: Auditor: Charles Heaven & Co.: Enrico Melaragno, Charles Heaven, Jr.

Alternates Liddy Adams and John Allen were seated in the absence of regular Board members.

2003-2004 Audit: The audit was explained in detail by Enrico Melaragno of Charles Heaven & Co. He noted the regulations of GASB Statement #34 now require the inclusion of three separate sets of financial statements, each using different methods and criteria: the usual Budgetary Method, the GAAP method and the new GASB Statement #34 method. A Management's Discussion and Analysis is also required and is included as an introduction to the audit. This is an analytical overview of the financial activities.

The MD&A included the following Financial Highlights:

The assets of the Town of Washington exceeded liabilities at the close of the most recent year by $12,984,016 (net assets). Of this amount, $2,685,787 (unrestricted net assets) may be used to meet the government's ongoing obligations. (GASB 34)

The government's total net assets increased by $354,746. In general terms, net assets increased due to favorable revenue variances from budget, favorable operations where revenues exceeded expenditures in actuality, and capital outlays. (GASB 34)

As of the close of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $4,283,321, an increase of $537,582 in comparison with the prior year. Of this amount, $2,034,379 (47.5%) is available for spending at the government's discretion (unreserved undesignated fund balance). (Using all major funds)

At the end of the current fiscal year, unreserved fund balance for the general fund was $2,622,779, or 23.47% of the total general fund expenditures and transfers out of $11,176,641. (Using General Fund only)

The Town of Washington's total debt decreased by $55,000 (9.09%) during the current fiscal year due to payment of scheduled bond principal amortization.

Mr. Melaragno explained the differences in the three methods. The Board agreed to review the audit and MD&A in further detail and to forward comments to the secretary prior to its submission to the State. The Board discussed the importance of maintaining an adequate fund balance and felt it prudent to perhaps set a policy for the future. There is no specific recommendation regarding the amount of fund balance set by the State.

Other long-term liabilities were discussed:

Bonds payable: ($550,000): Bond payments remaining due on the Bee Brook Firehouse.

Compensated absences: ($81,871): This is a record of accumulated unused sick days that are payable to employees upon retirement. They are audited annually and considered a long-term liability.

Post-closure Landfill obligation: ($60,000): The State requires that the Town continue to monitor the landfill area. Costs are estimated at approximately $3,000/year times the number of years that it is anticipated testing will be required. This is an estimate that was determined many years ago. It could be lower or higher depending on the law, test results, etc.

Pension Obligation: ($30,559): Actuarial tables are used to define benefits for the Plan by using life expectancies, etc. Rico noted if the Town continues to make deposits as recommended by the actuary, the deficit of $30,559 would correct itself over the years. This deficit is taken into consideration by the actuary each year.

The Board agreed an adjustment would be made to offset the overrun in the Building expense line by transferring the net over budget in Building income as a credit to this line's expense. It was agreed this would provide a more realistic report in the Building area.

Jack Boyer made a motion to approve an additional appropriation of $10,000 to the Police expense line and $5,000 to the Winter Maintenance expense line from the Fund Balance. The motion was seconded by John Allen and unanimously passed.

John Allen moved to re-appropriate the ex-budget appropriation for the STEAP projects in the amount of $20,000 for use in the 04/05 fiscal year. Mark Lyon seconded the motion and the motion was unanimously passed.

The Board commended the auditors on their explanation of the audit and the new requirements of GASB #34, as well as the additional effort required with the new requirements of GASB #34.

Minutes: Minutes of the December 20th meeting were reviewed. Question had been raised regarding the Parks and Rec's request for additional funding. The minutes noted the Selectmen's recommendation for an ex-budget appropriation in the amount of $20,000 would be discussed at the January meeting. The Board agreed this was correctly reflected in the December minutes. Also, the name of Betty Hinckley will be added to those in attendance at that meeting and the adjournment time was set at 6:50 p.m. Jack Boyer moved that the minutes be accepted as submitted with these additions. Mark Lyon seconded the motion and it was unanimously passed.

Tax Collector's Report: Accepted as submitted. A recommendation was made that the Tax Collector consider providing the monthly report in a format as shown in the audit (p. 49).

Tax Relief for the Elderly: An updated report of those currently eligible for tax relief had been provided to the Board, as well as a DRAFT ordinance. The report showed approximately 50 households are currently eligible. The Committee and the Selectmen recommended that the $33,000 threshold be increased to $36,900. The program would be carried out through the Assessor's Office, with assistance from the Senior Center Director. Jack Boyer made a motion to recommend that a program for Tax Relief for Elderly and Disabled Homeowners be considered at a forthcoming town meeting for those qualified with an annual income of $36,900 or less. Further, that the amount of $20,000 be approved to provide these tax credits toward real property tax and this amount be divided equally by the number of eligible applicants. Mark Lyon seconded the motion and it was unanimously passed. Dick Sears reported a town meeting would be scheduled in the spring to consider this and other matters prior to the annual town meeting in May.

Education: Jack Field reported the Board of Education will reconsider three areas of the proposed school building renovation project: limiting total costs of the proposed projects to $30 million, including grants; rewriting the educational specifications of the project; and attempting to provide preliminary costs to the towns in February for budgeting assistance. He reported an excellent presentation had been made by Terry Larson of the Webster Bank regarding governmental funding and requested the Board's authorization and support to engage Ms. Larson in designing a funding mechanism for this project. He reported they had agreed informally that a joint plan should be worked up for the three towns. Jack also requested the Board's authorization to engage Ms. Larsen to design a plan focused on Washington and the implementation of the Strategic Plan. This would allow for better long-range planning and would outline the effect the Region's bonding and future Town projects would have on the town budget, the mill rate, future funding and how much of a reserve to maintain. He suggested this work precede the Education referendum. He felt alternatives with the school building projects should continue to be addressed.

Jack Boyer felt it may be premature to pay a bond advisor before we know if the school project will be approved. It was suggested $30,000,000 could be used as a planning guideline for the school bonding and the Board could probably project its own projects.

Pavilion Bathroom: Dick reported the Selectmen are in support of the Parks & Rec Commission's request for additional funding to get this project completed. Jack Boyer made a motion to approve an ex-budget appropriation of $20,000, contingent upon meeting the fundraising goals. Mark Lyon seconded the motion. Dick reported they will return to the contractor to review costs. Mark Lyon commended the Commission on an outstanding job of fundraising and felt the Town should pay for half of the project. The motion was unanimously passed.

The three remaining items on the agenda: the Selectman's vehicle, a letter from Richard Dutton, and a letter from Joe Mustich, were tabled until the next meeting due to time constraints.

The meeting was adjourned at 7 p.m.

Respectfully submitted,

Kathy Gollow, Secretary

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Meetings in 2004