The Town of Washington, Connecticut
Minutes: Board of Finance - 2009
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www.WashingtonCT.org The Town of Washington, Connecticut Minutes: Board of Finance - 2009 |
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Posted: December 4, 2009 November 16, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order at 5:00 p.m.
Present: Members: Jack Boyer, Gary Fitzherbert, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Keith Templeton, A. J. Dubois
Selectmen: Mark Lyon, Nick Solley
Treasurer: Linda McGarr
Tax Collector: Tanya Wescott
Guests: WCHT: Walter Whitney, Richard Sears
Peter Tagley, Tony Bedini, Chris CharlesThe Board welcomed new members Gary Fitzherbert and Keith Templeton.
Pension:
Rex Swain updated the Board on the Town Pension Fund investments and custodial costs. He and Craig Schoon have met with The First National Bank of Litchfield, custodian for the Fund, and reviewed the original agreement instituted many years ago with regard to responsibilities and costs. The portfolio is currently managed by the Bank but at the direction of the Pension Committee. It is invested very conservatively, with the Bank having fiduciary responsibility.Our choices are to have the Bank actively invest and manage the funds, or to have the Board continue to manage the investments, in which case we should amend our agreement with the Bank to clarify that their role is strictly custodial. Active management would mean higher fees. Weighing the responsibilities involved in choosing the investments against their responsibility to the taxpayers and the pension fund was discussed at length. There was some feeling that the Bank should be hired to manage the funds, especially if stocks are involved. But most members felt that we should stick with a very conservative portfolio of approximately 85% fixed-income investments such as corporate bonds. In that case, it was generally agreed that the Board could continue to manage the investments itself.
Michael suggested a legal opinion be obtained regarding their liabilities as officers and directors and to review what other entities charge for similar arrangements. It is hoped that the Board can arrive at a consensus at the next meeting in anticipation of a vote being taken.
Washington Housing Fund:
Jack Boyer, a member of the WCHT, recused himself from the following discussion.) First Selectman Mark Lyon updated the Board on recent considerations for affordable housing. He reported the Selectmen had initially approved a request from the WCHT for financing for predevelopment costs associated with the acquisition, development and implementation of Marble Dale Meadows for $110,000 from the Town’s Affordable Housing Fund. This request had unanimously been approved by the Town’s Housing Commission with the condition that funds would be conveyed upon written receipt of a full funding commitment from the State DECD sufficient to complete the project. The condition was amended by the Selectmen at their November 12th meeting with the addition that $25,000 would be conveyed to the WCHT to complete immediate work required to complete the application to the State DECD. The balance of $85,000 would be conveyed upon receiving written receipt of a full funding commitment from the State DECD sufficient to completing the project. If approved by the Board of Finance at this meeting, the Selectmen planned to present the matter for a vote at a future town meeting.Mark explained the Housing Commission had been hesitant to use Town Housing funds while the application remained in competition with other applications before the State. They turned to the Selectmen, who initially considered requesting an ex-budget appropriation, which would not require a commitment of either Housing funds or taxpayer funds. However, the Selectmen agreed it was important to follow the process used by the Town for financial matters and present this proposal for a vote at a town meeting. The WCHT has reported they have negotiated with contractors to do the initial work required for the application for a percentage of the cost until the Trust receives their grant funds.
Michael suggested the Board consider the matter and is satisfied this is a wise use of taxpayers funds. It was also felt the Town’s support of this project may be a factor in a DECD decision to approve this project. Michael Jackson made a motion to approve the Selectmen’s request to proceed to a town meeting to consider the use of $110,000 from the Housing Fund, with the condition that the initial $25,000 of this would be used by the Washington Community Housing Trust to complete preliminary requirements for application for DECD funding. Craig Schoon seconded the motion. The motion was unanimously passed.
Education:
Tony Bedini reported Region 12 has hired a new facilities manager, Mr. Donald O’Leary. Having spent some time with Mr. O’Leary, Tony is quite confident that he knows his business and looks forward to working with him. They reviewed the Facilities Committee list of projects, as well as the school buildings in the other towns. Tony will update the Selectmen on recent undertakings of the Facilities Committee.
Treasurer’s Report.:
Linda McGarr reported that CEDARS, an investment mechanism, is available through the FNBL. These are investments in CD’s split across 200-300 geographically-diverse banks. There are no fees involved. She will pursue more information on these investments. It was noted funds remaining in the Boat Launch Account have been returned to the Nonrecurring Capital fund.
Tax Collector:
Tanya Wescott reported she has been sending out courtesy letters to all who have more than July payments in arrears. She asked the Board to approve funding for attorney fees approximating $2,000 to pursue a foreclosure, whose owner has ignored correspondence from both the marshal and herself. The Town would be reimbursed for costs following the foreclosure process. Jack Boyer made a motion to approve Tax Collector Wescott’s request. Rex Swain seconded the motion. The motion was passed unanimously. Tony Bedini warned that the Town be aware that some properties could become liabilities to the Town if taken and this should be reviewed.
Appointment of Auditor:
Jack Boyer made a motion to appoint Charles Heaven & Co., Inc. of Waterbury as the Town’s auditor for the 2008-2009 fiscal year. Michael Jackson seconded the motion. Motion passed unanimously.
Financial reports:
Mark Lyon reported the Town is on schedule with expenses for the year.
Nonrecurring Capital:
Jack Boyer noted funds remain in the Capital Fund for DEP-required environmental testing of the Titus Park area several years ago. He suggested since so many entities within the Town are interested in uses for this area, the DEP should be contracted for a release. If this can be accomplished, the land could be a valuable asset. The Selectmen will contract Lenard Engineering for an update on the status of this property. The salt content had been decreasing through natural attenuation. All agreed this was a good idea.
The meeting was adjourned at 6:05 p.m.
Respectfully submitted,
Kathy Gollow, Finance Secretary
Posted: November 15, 2009 October 19, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order at 5:00 p.m.
Members: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Rex Swain, Barbara Brown
Alternates: Liddy Adams, Tony Bedini
Selectman: Mark Lyon
Treasurer: Linda McGarr
Guests: Valerie Friedman, Gary Lord, Philip MarkertMinutes:
Minutes of the September 21, 2009 meeting were accepted as submitted.Treasurer’s Report:
The Treasurer’s Report was accepted as submitted. Linda McGarr will e-mail the Chairman reports on the STIF accounts. Jack Field moved that $200,000 from the Town Aid Road account and all funds remaining in the Boat Launch account be transferred to the Nonrecurring Account to offset project costs that have been completed. Barbara Brown seconded the motion. The motion was unanimously passed.Financials:
General Fund:
Mark Lyon reported the State has doubled the fees the towns must charge for various Land Use and Pistol Permits as of October 1. All other areas seem in order for this time of year.Pension:
Rex Swain reported Craig Schoon has agreed to join the Town’s Pension Committee. They have reviewed the various investment accounts and will meet with representatives from the First National Bank of Litchfield to discuss the Bank’s role as trustee and/or custodian of the accounts, as well as their fees. They will also review assumptions used for calculating future coverage with the Town’s actuary.Financial Consultant:
The Board discussed the proposal submitted by Linda Savitsky regarding the future financial responsibilities of the Town. It was agreed a long-range plan should be instituted to update the current financial system. This would require articulating job descriptions and responsibilities, preparing a set of policies and procedures, reviewing space availability, and developing an RFP to obtain in-house software and hardware to coordinate with the systems used in the Tax Collector and Assessor’s offices. Auditor’s comments and advice will be requested.Michael cautioned that the current system be continued for at least a year while the new system is being put in place. Mark noted he had spoken with a neighboring vendor as far as IT issues are concerned who would be willing to meet to discuss the requirements, including service agreements, etc. Ms. Savitsky’s proposal will be reviewed in detail.
Areas to be considered should include:
* Review of the way specific jobs are currently being done.
* The possibility of job-sharing with other towns for IT skills.
* Whether an IT person could be hired in conjunction with another job.
* Whether independent contractors could be hired to fill some future positions that open up through retirement, etc., thus reducing employee benefit costs.All agreed on the importance of proceeding with a review of the current status of what is being done, how we are doing it, what lies ahead, and consultant costs for continued assistance with this process.
Education:
Jack Field referred to Dr. Armand Fusco and The Federation of Connecticut Taxpayers, both of whom are public advocates of citizen awareness as a means to restrain growth of property taxes in CT. Dr. Armand is a retired former school district Superintendent and is well recognized and experienced in the field of Education and is an advocate for better management and monitoring of school resources. He suggests the need for every town to become more fully involved in the understanding of the Education budgets.Jack suggested the Board consider a collaborative effort of the Boards of Finance of the three member towns be held to discuss and better educate themselves on the mechanisms of the Region 12 budget. He felt it is time for the towns to become more assertive in understanding and more involved in development of the Region’s annual budgets from the beginning of the budgeting process. While this may not be easy, and may meet with resistance, cooperation should be sought from the Region’s Board and its Finance Committee.
He further suggested representatives of the three Boards of Finance meet to discuss this concept. Initially, an analysis of the previous year’s financial audit of the Education actual spending vs. budget could be reviewed to provide better understanding as a basis for oversight of school spending and performance effectiveness. By February, the towns could be in a position to have reviewed the audit and compared it with other towns throughout the State. They could then suggest appropriate goals to the Region BOE for its consideration in the development of the budget for the following year.
The Finance Board realizes that its role in relation to regional school budgeting and spending is not as directly connected as are budgets and spending in school districts that are not regionalized. It also recognizes that the Regional Board of Education has exclusive statutory authority over the Region’s budget and spending, subject only to approval of region-wide voters. However, it believes the willingness of the three towns to work together in a spirit of cooperation, and in conjunction with the Board of Education, is essential for a positive future for the Region.
For example, coordinating the contracting of towns’ and region’s work and purchases would make sense and should provide opportunities to save tax money. By doing this, the Boards of Education, Finance and Selectmen would be meeting their responsibilities to the citizens to assure total tax dollars are being spent most effectively to achieve both town and education objectives. Jack felt the Board of Education members already have a large responsibility for guiding and overseeing the Region’s operations, and would benefit from sharing with the towns the work of budgeting, auditing of spending, and communication to taxpayers of plans for spending of 65-70% of their tax dollars.
It would be in everyone’s best interest if the three towns and the Region could work toward a consensus on spending and education performance and make a conscious effort to cooperate. In this way, the Boards of Selectmen and Finance could support the Education budgets that had been fully evaluated and accepted as responsible and supportable.
It was suggested that the Ass’n. of Governmental Accountants may be a good contact to assist all in developing a better understanding of audits and budgets.
It was further suggested that a meeting of representatives of the Boards of Finance of three member towns be initiated and that the Chairman of the Board of Education be informed that a dialogue between the three towns regarding shared services would begin. The Board was enthusiastic about this proposal and they were hopeful of a positive response from the Board of Education.
With relation to budgets, Philip Markert, in public comments, reported he had recently reviewed the Guidebook for Boards of Finance. He felt the Board of Finance may have more opportunities to impact school budgets than they realize. Michael noted there is a lot of latitude between a town and a school district that is included under a town’s budget; however, the statutes do not allow the same latitude between towns and a regional school district. Cooperation between towns and regional school districts is of great importance and is an essential asset toward building a better school system. Mr. Markert felt the establishment of a tri-town committee would work well toward a better education for the taxpayers, and it is time for this to be done.
Gary Lord felt his Board of Finance most likely would agree to look into this, and that this group could become an advisory group to the Board of Education.
The meeting was adjourned at 6:30 p.m.
Respectfully submitted,
Kathy Gollow, Finance Secretary
Posted: October 13, 2009 September 21, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order at 5:00 p.m.
Present
Members: Jack Boyer, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Tony Bedini, A. J. Dubois
Selectmen: Nicholas Solley
Treasurer: Linda McGarr
Minutes
Minutes of the July 20, 2009 meeting were accepted as submitted.
Treasurer’s Report
The Treasurer’s Report was accepted.
Linda McGarr will review the status of the State’s STIF account, as well as the monthly fees for the Town’s Trust accounts. Treasurer’s Report accepted as submitted.
Tax Collector’s Report
The Tax Collector’s report indicated 51.33% of outstanding taxes have been collected as of August 31. The Board was pleased with returns.
Financials
General Fund
Building Inspection fees are higher than anticipated. Expenditures in this area are offset by income received as contracted. Town Clerk conveyance fees are also somewhat higher than anticipated, though lower than in the past. Expenses: Many are front-loaded, but all seem to be in line.
Employee Health Program
The employees are becoming familiar with the new high-deductible health insurance plan, which is now working smoothly and in a timely manner. Employees forward medical bills directly to the McKellan Group for approval. McKellan notifies the Town on a bi-weekly basis of approved invoices and funds are transferred by the Town to cover these expenses. Payment is then made directly by the McKellan Group. This procedure is monitored closely. While this requires more diligence on the part of the employee, it is aimed at reducing costs for insurance coverage.
Boat Launch Fund
The Town’s boat ramp project is complete. Jack Boyer made a motion to return funds remaining in the Boat Launch Account (currently $102,770.98) to the Nonrecurring Capital Fund. Craig Schoon seconded the motion. Motion unanimously passed. Additional projects currently underway are the demolition and replacement of the beach house. When complete, excavation, landscaping and parking projects will begin. LoCIP and STEAP grants are budgeted to offset costs for these projects.
Open Space Fund
Liddy Adams reported the purchase of property in New Preston is back on the table. The owner has agreed to have the property remediated.
Painter Ridge Road Project
A State Rural Road Connector Grant covering 80% of costs for eligible road projects became available to the Town for the repaving of Painter Ridge Road. When the Capital Budget was approved at the May town meeting, a specific line item was not included for this project. In order to take advantage of the grant, funds from other Capital Road projects were used. The Selectmen will present a request at the Town Meeting in October to replenish funds in the amount of $190,000 to those projects from which funds were used.
Town Aid Road Funds
Town Aid Road Funds approved for fiscal 2008-09 to offset capital road costs in the amount of $200,000 will be transferred to the Nonrecurring Capital Fund. Additional Town Aid Road funds are anticipated from the State this year.
October Town Meeting
Nick Solley reported the Selectmen will present three financial items for consideration at the October town meeting in addition to setting dates for the 2010-2011 budget hearing and meeting:
* To transfer funds in the amount of $50,000 from the Sanitation section and $20,000 from the Conservation of Health section of the 2008-2009 General Fund Budget to cover over-expenditures in the 2008-09 Winter Maintenance budget of $71,023.32.
* To add a line item to the current 2009-2010 Capital budget not to exceed $190,000 for the Painter Ridge Road Reclaim and Repave project. 80% of these expenses will be offset by a Rural Minor Connector State grant.
* To add a line item to the 2009-2010 Capital budget in an amount not to exceed $99,500 for the Nettleton Hollow Road Bridge Project. These expenses will be offset by a State Bridge Grant in an equal amount.
Nonrecurring Completed Projects
A motion was approved to transfer funds from the following completed project lines in the Nonrecurring Capital fund to the General Fund:
* 2004-05Q: GARAGE OIL TANK AND VENTOR $2,514. * 2007-08 B&P: H: PAVILION SEPTIC: $1,787.05 * 2007-08 B&P: P: SPILLWAY HOUSE $1,453.06 * 2007-08 V&E: D: FIRE EXTRACTION EQPT. $ 30.40 * 2007-08 V&E: E: HIGHWAY USED COMPRESSOR $2,700.59
Education
(The following is a synopsis from Jack Field for the Board’s information due to his absence from this meeting):
“At BOE meeting 9/14, which I attended, Dr. Storm announced that the former Facilities Manager is no longer on the Region payroll, and that he (Dr. Storm) has a search committee to find a qualified person (per the job description) to replace him. He has 32 applications, which the search committee is screening, and he expects to have the new, well-qualified Facilities Manager on board about the end of October. In addition, the function/position will report to the Superintendent directly instead of to the Business Manager.In addition, they have the first draft estimate of the cost of the "April 1 Repair List", which is around $2.9 million. However, this estimate is being polished to eliminate some things already done and to get input of the new BOE Facilities Committee (of which Tony is Chair). They think it will come in somewhere around $2.5 M, since about $400,000 will have been already spent. The Business Manager will consult with bond counsel to determine how much of this total is "bondable" and will develop a funding plan. He will also determine how much of the project, if any, will be eligible for State Reimbursement. Chairman Hirschfield, mindful of the urging of the First Selectmen to move this project along, instructed the Administration to have a final report and referendum recommendation ready for the October 26, 2009 BOE meeting.
So our BOS/BOF should know that a referendum to complete this project and this list will be coming. If approved, and if there is a credible plan for the work to be completed expeditiously, and there is a management structure in place to manage maintenance from that point on, then a request will soon follow to sign a newly drafted 20 year lease agreement.
It will be critical that everyone, including the public, understand that this referendum is to fund a backlog of previously deferred maintenance. It does not solve many existing problems in the buildings, such as drainage and air quality, and it doesn't bring everything up to codes. (We all know what "renovation to new" would cost.) So questions will come up: "Why make this investment in old, obsolete buildings"? -- and "what's next"? The answer is that with the economy in the tank and everyone struggling to make ends meet, and no consensus on a long term plan for elementary education in the region, this is the least we should spend to restore the buildings to the condition the First Selectmen have said they want. It also is the condition the Towns would require if the Region were to decide not to continue to use them.
We believe the kids and teachers need and deserve these improvements in their work environment, regardless of whether "next" is a complete "renovation to new" or "consolidation", or any other long term strategy for primary schools in the Region. It will provide a "cooling off" period, time for the economy to recover, and time to work once again to develop a consensus long term plan for elementary education in the Region. Jack”
Tony Bedini, chairman of the Region’s Facilities Committee, reported further on the Education area. He noted the Region is now searching for a new Facilities Coordinator and has received 32 applications thus far. These will be reviewed by the Search Committee for qualified candidates and those with building experience. Their findings will be reported to the Superintendent. Tony noted having the right person for this position is extremely important and having the right person in this position would actually save money.
A list of repairs has been estimated at $2.8 million, which includes the two roofs at the Burnham and Booth Schools ($400,000.) Meanwhile, the Region’s Business Manager has been seeing that additional projects on the list are being completed. These projects, as well as the two roofs, should be deducted from the total repair estimate. The Business Manager reported that most of the items on the list will not be bondable. Those that are eligible for bonding require that a 20-year lease be in place as the bonding companies are interested that the life of the material used will last as long as the bond.
Tony reported further that he and Charlie Boucher have reviewed the list. They will meet with the estimator to try to more fully understand the list of repairs, projected costs and actual plans for the projects. He also noted there is the need to be more proactive. The bidding process and procedures that are followed will be reviewed. Tony will sit in on meetings with contractors, estimators, and architects to more fully understand proposed projects from their beginning. The Board noted their appreciation for Tony’s attention to these matters.
Financial Statements
Michael Jackson requested financial statements be obtained from the Housing Trust through June, 2009.
Pension
Rex Swain reported the Pension Committee will review the Firefighters/EMT’s pension investments at the request of one of the firefighters. He asked the Board to consider the current investment policy.Meeting was adjourned at 6:10 p.m.
Kathy Gollow
Secretary
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NOTE: No meeting was held during the month of August
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Posted: October 13, 2009 July 20, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order at 4:56 p.m.
Present
Members: Jack Boyer, Barbara Brown, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Tony Bedini, A. J. Dubois
Selectmen: Mark Lyon, Nicholas Solley
Treasurer: Linda McGarr
Minutes
Minutes of the June 15, 2009 meeting accepted as submitted.
Treasurer’s Report
Accepted as submitted.
Financials
General Fund expenses for 2009-2010 were reviewed. While total expenses exceeded the 2008-2009 budget, it was noted this was mainly due to expenses in the Building Inspection area, which had been expected. This expense is offset annually by income in this area and is addressed through audit. Winter Maintenance expenses also exceeded the budgeted line item. These expenses will be addressed at the October town meeting with a resolution to approve the additional costs.Nonrecurring Capital projects completed as of June 30, 2009 will be reviewed at the next meeting. Surplus funds from completed projects will be returned to the General Fund. Town Aid Road funds will be transferred to the NRCEF offset costs as planned in the budget. It is anticipated Town Aid Road funds will be reduced by 25% for the 2009-2010 fiscal year.
New Business
Land Use Consultant and Performance Bonds:
Tony Bedini reported a review of the procedures used by the various land use commission indicates various procedures have been used to track these bonds. He suggested this be included in Linda Savitsky’s review of the financial operations. The Board agreed.
Education
Tony Bedini reported he and Charlie Boucher had reviewed specifications and measurements for the replacement of the Booth Free School roof, as well as inspecting the roof itself. They arrived at a price of $87,000 for the project, while the Region had been charged $192,000. They met with the Superintendent of Schools and the architect from Silver/Petrucelli to review the specifications.Tony reported local contractors felt the architect should have provided due diligence in the project and there should be more direction and involvement by persons experienced in building construction when renovating the school buildings. While bidding procedures are being followed, no one with a knowledge of the building process is available. There is no vetting of what goes into a bid and no inquiry as to what goes into the process or construction. He felt the same is true of the maintenance of the buildings and that personnel at the Region are defensive when questioned about this. He asked if the towns have the right to ask for presentations from bidders and noted the possibility of the towns extending the invitations to bid has been suggested. Tony does not feel that we can let this matter go and felt a good plant manager could have been hired for the kind of money that has been wasted.
The issue of the leases on the buildings is an additional problem. Statutes direct that the Region has 100% responsibility for maintenance of the buildings and the towns have none. The only place the conditions of the buildings could be addressed with leverage is through the leases. Bonders will not approve because of no lease agreement.
It is hoped with the new leadership and membership on the Board of Education all will strive to rectify this situation. It is hoped the Boards of Selectmen, Finance and Education can meet to address these issues in the near future.
Personnel
The Board agreed to enter Executive Session at 5:48 p.m. to discuss a personnel matter.The Board re-entered the regular session at 6:00 p.m.
The meeting was adjourned at 6:01 p.m.
Respectfully submitted,
Kathy Gollow
Secretary
Posted: July 10, 2009 June 15, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order at 5:00 p.m.
Present:
Members: Jack Boyer, Barbara Brown, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Tony Bedini, A. J. Dubois
Selectmen: Mark Lyon, Nicholas Solley
Treasurer: Linda McGarr
Guests: Arthur Mulligan, The McKellan GroupMinutes:
Minutes of the May 18th meeting were accepted as submitted. Minutes of the May 21st meeting were amended to read: “Barbara Brown (rather than A. J. DuBois) made a motion that the mill rate be set at 10.75.” The amendment was approved by the Board unanimously.Health Insurance:
Mr. Mulligan reported on continued efforts by the Town to reduce health insurance costs. Previous experience by the Town covering a portion of deductibles has resulted in a savings in premium costs. It was agreed to continue this policy. The use of a Health Reimbursement Account will be utilized to cover specific co-pays/prescriptions, etc. A Choice Care Card will be coded for only medical claims that are eligible for coverage. Coverage will begin August 1. Rex noted the Town still does not ask the employees to share this burden. Mark felt the employees fully recognize the value of this benefit and willingly agreed to a 0% increase in pay to keep the Town budget down. Mr. Mulligan commended the Boards on their foresight to consider alternatives in health care in order to maintain lower costs for the Town.Treasurer’s Report: Accepted as submitted.
Land Use Bond Account:
Tony Bedini questioned the procedure used regarding Land Use bonds and voiced concern about funds remaining in the Bond account. It was reported bonds are required by the land use commissions to insure the satisfactory completion of projects. The amount of the bond is set by each commission and deposited by the Treasurer into the Land Use Bond account. Bonds in excess of $5,000 are deposited separately in order to collect interest, which is returned to the owner. Expenses that result in conjunction with a specific project are forwarded by the commissions via the Land Use Coordinator to the Treasurer for payment. Funds remain in this account until the Treasurer has been notified that the project has been completed. It was agreed to review the current bonds to insure that all funds for projects that have been completed are returned to the applicants. Tony Bedini will report on this further at the next meeting. Rex Swain also requested that Parks and Rec funds be reviewed at the next meeting.Financials:
Mark reported certain areas such as fuel, winter maintenance, and electric costs will exceed the budgeted line items in some areas; however, it is anticipated the overall General Fund budget will result with a surplus at the end of June. All town employees have been asked to keep expenses to a minimum wherever possible. The Board of Assessment Appeals has completed their meetings with concerned taxpayers regarding the revaluation of their properties. Several adjustments have been made and more than $25,000,000 was reduced from the Grand List. Possible legal expenses may be required. Mark will continue discussions with Total Valuation Services regarding problems that arose during the revaluation.Education:
Jack Field and Tony Bedini reported on discussions with the Superintendent of Schools regarding the need to complete a plan to bring the condition of the three Primary Schools up to Town standards as quickly as possible. The list of work needed was delivered to the Superintendent on April 1st, and was expected to be cost estimated with work to begin as soon as school was dismissed in June. As of mid- June there are still no estimates. Re-roofing is being planned for Booth and Burnham Schools, but none for WPS. Some maintenance at WPS has been done, but neither the quality nor the cost of the work that is being done are satisfactory. The Town has previously told the Superintendent that a lease would not be signed until the school is repaired to our standards and a management maintenance system and adequate personnel are in place. The matter now remains with the Superintendent and the Business Manager. It was also reported the Region is currently developing costs estimates using State rules and requirements for improvements to buildings. It is not sure if there will be any State reimbursement, but the Region is proceeding as if everything is potentially reimbursable. The Chairmen of the Region Facilities and Lease Committees are recommending that Roxbury and Bridgewater sign the currently proposed leases. While they claim there is a reimbursement, there is only enough money to do two roof jobs, probably leaving little or no money for the Washington building. It is Jack’s personal feeling that we are where we were in March, with a promise to get the work done at some unspecified time with the funding plan and work schedules unknown at this date.Michael Jackson stressed that this is the Town’s property. If it has been turned over to someone who has not maintained it for twenty years, and the issues are not addressed, the Town would be tacitly concurring with them. The current consensus is that the proposed lease agreement not be signed for another year while this is sorted out, and that negotiations and agreement should be reached by all three towns for each to take on management, control and costs of maintenance of its own primary school.
One other issue is the cost for the roof replacements. We are paying more in order to qualify for State reimbursement, possibly more than the amount of the reimbursement itself. Tony is working with Region managers to determine if this is or is not the case.
Mark Lyon did not feel the Region is holding up its end of the bargain regarding repairs. The Region has not demonstrated an ability to do these repairs, nor does it seem committed and able to maintain the buildings adequately on an on-going basis. The most he would agree to at this point would be a one-year extension of the existing Lease contract. The Board of Selectmen will proceed with further discussions on these matters.
The Board entered Executive Session at 6:28 p.m. to discuss a personnel issue.
The Board re-entered the Regular Meeting at 6:35 p.m.
The Board reviewed and approved the Tax Collector’s Report and Suspense Book, which will be signed by the Secretary.
The meeting was adjourned at 6:37 p.m. Respectfully submitted,
Kathy Gollow, Secretary
Posted: June 14, 2009 May 21, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the meeting to order immediately following the Town Meeting.
Present:
Members: Jack Boyer, Barbara Brown, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams, Tony Bedini, A. J. Dubois
Selectmen: Mark Lyon, Nicholas Solley, Jim BrintonTown Expenditures for the 2009-2010 fiscal year were approved at the Town Meeting as follows:
General Fund Expenditures: $3,928,126 Transfer to Open Space Fund: $75,000 Transfer to Housing Fund: $25,000 Transfer to Legal Litigation Fund: $20,000 Capital Fund Expense: $906,900 Less Anticipated Grants: (30,000) Net Capital Expense: $876,900 Region 12 will present its proposed expenditures at a forthcoming budget vote at the same level as this year’s Gross Expenditures. There will, however, be an increase in expenses billed to the Town of $171,307, or 1.9%, as our pupil population has increased from 45.25% to 45.95% and because revenues at the Region level are projected to be lower than in the current year.
2009-2010 Mill Rate:
The Board discussed assumptions for the coming fiscal year’s budget. While General Fund expenditures remain level, Transfers & Capital Fund expenditures have been reduced resulting in a lower overall Town expenditure. Arthur Dubois made a motion to set the mill rate at 10.75. Barbara Brown seconded the motion. The Board unanimously agreed.The meeting was adjourned at 8:40 p.m.
Respectfully submitted,
Kathy Gollow, Secretary
Posted: June 14, 2009 May 18, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Chairman, Michael Jackson called the Hearing to order at 4:58 p.m.
Present:
Members: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Barbara Brown
Alternates: Liddy Adams, Tony Bedini, A. J. Dubois
Selectmen: Mark Lyon, Nicholas Solley
Treasurer: Linda McGarrMinutes:
Minutes of the 4/13/09, 4/20/09, 5/7/09 budget hearing and 5/7/09 meetings were reviewed. It was noted that both A.J. Dubois and Liddy Adams had also been in attendance at the April 20th meeting. Minutes accepted as corrected.Budget:
Discussion on the proposed Town budget was held. The General Fund and Capital Fund proposed expenditures will continue to be reviewed by the Selectmen prior to the Town Meeting. Any changes will be discussed and presented at the Town Meeting.Treasurer’s Report: Accepted as submitted.
Financials:
Funds remaining in the Boat Launch account will be returned to the Nonrecurring Capital Fund once remaining projects are complete. LoCIP grant funds received for completed Capital projects have also been deposited to the Capital Fund.Washington’s Financial Planning Model:
The Financial Planning Model assumptions were discussed at length. While tax collections in the current year are anticipated to exceed the 98.8% budgeted, non-tax revenue (i.e. interest income, land use & building fees, conveyance taxes, etc.) are lower than anticipated, resulting in a lower overall income than budgeted. Town operating expense for the current fiscal year will exceed budget in the winter maintenance and pension areas. This may result in a higher overall total operating expense than budgeted, resulting in a slightly negative net General Fund balance for the current year than anticipated.The Grand List for the 2009-10 fiscal year is $1,250,524,800. This includes the revaluation figures, as well as agreements reached following the 196 appeals addressed by the Board of Assessment Appeals. It is estimated revenue will decrease by $272,000 in the same non-tax revenue areas as the 2008-09 year, while operating expense will increase by $63,000. Education is currently estimated at a $171,000 increase. (The Education budget has not as yet been approved and these figures would be amended once approved by the voters.) A drawdown from the Town’s Fund Balance may be used to offset the 2008-09 budget. Michael noted a word of caution regarding the Fund Balance and suggested it not be reduced further. The use of these funds over the past five years has allowed the Board to maintain a more stable mill rate; however, the reduction in income this year had not been anticipated. Maintaining a fund balance is not only important to the Town’s municipal bond rating, but also to that of the Region. Michael also noted the importance of protecting the Town’s funds when investing is of utmost importance. He felt the townspeople have trusted the Finance Board in the past to set a reasonable mill rate. He hoped not to end the current year with a Net cash deficit greater than planned, but felt it reasonable to assume this may occur. Hopefully, tax collections will be greater than planned and sufficient to cover shortfalls in non-tax income.
The Selectmen will consider further capital expense reductions before the Town Meeting. It was agreed the future state of the economy remains questionable.
Boat Launch Fund:
It was agreed to transfer funds remaining in the Boat Ramp account to the Nonrecurring Capital Fund once the final aspects of this project are complete.The meeting was adjourned at 6:10 p.m.
Respectfully submitted,
Kathy Gollow, Secretary
Posted: May 17, 2009 May 7, 2009
The following minutes of the Board of Finance hearing are submitted subject to approval at the next meeting.
Town of Washington – Board of Finance Annual Budget Hearing May 7, 2009Chairman, Michael Jackson called the Hearing to order at 7:30 pm.
Present:
Members: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternates: Liddy Adams
Selectmen: Mark Lyon, Jim Brinton, Nicholas SolleyGeneral Fund Expense:
First Selectman Mark Lyon presented the proposed General Fund budget in the amount of $3,947,026, a 1.4% increase over the previous year. He noted the following major items have had key effects on the budget:
* Three items are outlined differently in this year’s budget:
* The Open Space expense in last year’s Capital budget has been reduced by 50% to $75,000. Since the Open Space Fund is a specific fund, the Town auditor has suggested this transfer be made directly to the Open Space Fund.
* The Housing expense in last year’s Capital budget has been reduced by 50% to $25,000. Since the Housing Fund is a specific fund, the Town auditor has suggested this transfer be made directly to the Housing Fund.
* A Legal Litigation Fund is proposed for anticipated legal expenses of $20,000 year. This amount will be transferred directly to a new Legal Litigation Fund, which will continue to be maintained for future litigation costs only.
* $17,000 added to (020) Accident and Health Insurance line item. Actual costs for the Town’s current plan are not yet available. Selectmen will continue to review the Town’s current plan, as well as seeking other plans in an attempt to lower costs.
* $39,000 increase for materials in (032) Winter Maintenance. Materials and labor exceeded budgets in past two years due to many weekend and night storms. Selectmen felt it would be irresponsible to ignore this area.
* $15,000 has been added to the (044) Pension line item as suggested by Pension Consultants.
Mark noted the town employees had agreed to a 0% increase in wages to maintain the budget and not cause an additional burden to the taxpayers, for which he is very appreciative. He noted each department had been asked to be as frugal as possible and they had done a good job. He had hoped to get the same cooperation from the Regional School District employees as well.Including the transfers, the total General Fund budget currently stands at $4,067,026, a 3.5% increase overall.
Capital Fund Expense:
Mark reported the Capital Budget remains level as the Selectmen continue to attempt to maintain the Town’s infrastructure. A decrease in Capital Expense is shown as Open Space and Housing line items are no longer included under the Capital Fund. -9.8% - Overall+.4. $1,036,900.Michael Jackson reported the proposed Education budget had increased 1.5%; however, due to an increase in pupil population in Washington, the Town’s share increased from 45.25% to 45.95% of the population resulting in an increase of 3.1%. Since the initial proposed budget was not approved, the Town’s will amend their financial calculations when the amended budget figures are received. While this will have some impact, it will not be significant. The impact the recent economy will affect tax payments in July is anyone’s guess. The Board had decided to prepare for this possibility by asking the Selectmen to defer certain items in the event there is a shortfall in income. If any action is necessary, this situation will become more definitive after taxes are collected in July. The Board calculates tax collections at 98%, which ran as normal during the past year. The mill rate will be set after the Town Meeting. Generally the mill rate will drop following revaluation; however, until a final Grand List is completed, this is still uncertain. The BAA has completed their work and the Assessor anticipates she will be able to give us the adjusted Grant List by the town meeting.
Question was raised why funds remain budgeted for Open Space and Housing if there is concern over the budget. It was noted the whole process of open space and housing started 6 years ago when the Town indicated its priorities for a variety of subjects. It has been approved at town meeting every year.
Janet Wildman voiced her concern about funding the Library and felt the Town should have 20% representation on the Library Board since it contributes 20% of their funds. Rex noted the dollar amount as a percentage of expenditures is very small as compared to other towns. Michael noted any outside agency requesting funds from the Town is asked to present their budget for review. The Boards of Selectmen and Finance work together with representatives from the Library Board. He felt we are extremely lucky to have to finance only a portion of their costs and their volunteer Board and employees do an exemplary job of providing these services and raising funds.
Janet also questioned if the Boards had given any thought to doing away with the Resident Trooper program. Mark reported they had looked into this, especially when the State proposed increasing the Town’s share of the costs from the current 70% to 85%. This increase has not occurred. He noted if we were to eliminate our resident trooper program, we would also have to eliminate our constables and we would incur other responsibilities and costs. What may have been allowed in the early 50’s may no longer be allowable today by the State.
Peter Tagley questioned if the Board could estimate what the increase would be. Michael noted since the revaluation is not complete, the Board is not ready to discuss this at this point. The Board attempts to maintain 1 ½ months of expense in reserve, which they feel is responsible.
Dick Carey questioned if the Town has considered using the real estate facility that is being vacated by Steep Rock for use as municipal offices before going into the commercial market. Michael reported the Town had employed a consultant several months ago. Suggestions were made on staffing, systems and space. While the Town is fortunate to have employees who work well together, some configurations should be reviewed because of the multiple functions carried on in some offices. Mr. Carey suggested certain offices that are only used a day or two a week could be shared by others for other uses. The Boards will consider these suggestions.
Janet Wildman questioned if voting hours for the school budget referendum could be reduced from 6 a.m. to open at noon and continue until 8 p.m. Mark will attempt to get a definitive answer. The Town would save $1,000-$1,200/day.
The Hearing was adjourned at 8:07 p.m.
Respectfully submitted,
Kathy Gollow, Secretary
Board of Finance Meeting
Minutes of the Board of Finance meeting held immediately following the Budget Hearing.
Chairman Michael Jackson called the meeting to order at 8:08 p.m.
Present:
Members: Jack Boyer, Michael Jackson, Craig Schoon, Rex Swain
Selectmen: Mark Lyon, Jim Brinton, Nicholas SolleyMichael Jackson made a motion to reappoint Charles Heaven & Co., Inc. as auditor for the 2009-2010 fiscal year. Jack Boyer seconded the motion. Motion unanimously passed.
The Board will discuss the proposed budget further at their meeting scheduled for May 18th.
The meeting was adjourned at 8:12 p.m.
Respectfully submitted,
Kathy Gollow
Selectman’s Office
Posted: May 12, 2009 April 20, 2009
The following minutes of the Board of Finance meeting are submitted subject to approval at the next meeting.
Special Budget Meeting
Chairman, Michael Jackson called the meeting to order at 5:00 pm.
Present:
Members: Jack Boyer, Barbara Brown, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Selectmen: Mark Lyon
Treasurer: Linda McGarrMinutes of the previous meeting were accepted as submitted.
Tax Collector’s Report:
Approved as submitted. If the current tax collection trend continues, we probably will have a somewhat less fund balance than usual at the end of the fiscal year.Treasurer’s Report:
Approved as submitted.Financials:
Expenses are running on track; however, Winter Maintenance is $52,000 over budget due to the numerous storms this past winter season. Plans to address a special appropriation regarding this over-expenditure will be addressed for consideration at the May town meeting. Future budgets will most likely include coverage for increased material costs.Depot Firehouse Lease:
The upstairs space at the Depot Firehouse will be available at the end of this fiscal year. Use of this area will be reviewed for possible use for municipal space prior to extending it for commercial space. However, it was noted this space is not accessible to the handicapped. Window replacement/repair that has been budgeted will be done on the building while the space is empty.Capital Projects:
Town Aid Road funds have been transferred to the Capital Fund for completed road projects as budgeted. Other capital projects currently include:
* Beach house replacement to begin in the fall.
* Reconstruction of the Nettleton Hollow Road bridge - this summer. Final approval has been received by the D.E.P.
* Painter Ridge Road – Reclamation project awarded to Waters Construction Co. – this summer.Other projects are being reviewed by the Building and Property Committee and include:
Material storage capabilities at the Blackville Road garage site. Engineering work may be required, as well as movement of materials from the Titus Road site. State and federal funding opportunities and requirements were discussed but nothing is concrete at this point.2009-10 Budget: General discussion included:
* Minor changes in the proposed General Fund budget, including health insurance costs, which will not be available before May 1.
* Currently, General Fund expenditures are proposed at $3,951,125. This figure will change as further budget information is received.
* The establishment of a Legal Litigation Fund.Revenue:
Discussion was held on the method of forecasting revenue due to the country’s current economic conditions and how they could affect property owners. The Board agreed that the Tax Collector has done an excellent job, but many items must be taken into consideration, including the increase in pupil population 45.25% to 45.95% for 2009-2010. The Board agreed they will proceed with their current plan and will use General Fund surplus, if necessary. The Selectmen also agreed that certain Capital projects would be diverted, if necessary, until such time as Town finances would allow their completion. Town employees have agreed to a 0% increase in their wages, for which the Selectmen noted their appreciation.Education:
Jack Field reported repair projects on the WPS are proceeding slowly. Tony Bedini is working with local contractor to obtain estimates.Alternate’s Position:
The Board discussed the vacancy in the position of alternate on the Board. By CGS, the Board is empowered to fill vacancies and has attempted to maintain a balance of political parties in the best interest of the Town. Currently, there are three Republicans and three Democrats as Regular Board members and two Republican and one Democrat Alternate positions. The current vacancy occurred in a seat currently held by a Republican.Jack Field suggested Tony Bedini, an unaffiliated voter, be considered for this position as there are a significant number of unaffiliated voters in Town. He felt that Tony had been attending meetings and has done an excellent job in many projects associated with the Town.
Town Treasurer Linda McGarr suggested the Board interview the candidates recommended by the Republican Town Committee. She felt the process of interviewing candidates should continue at it had, at times, in the past. Michael Jackson noted while recommendations are requested of the Town Committees for the Board to consider; the Board ultimately decides on the appointment. He felt everyone was comfortable with the candidate suggested, absent the discussion that they are not comfortable with the process. Jack Boyer made a motion to appoint Tony Bedini to fill this position as alternate for the unexpired term until the next election. Craig Schoon seconded the motion. The motion was unanimously passed. This term continues until November 2011.
Legal Litigation Fund:
The establishment of a Legal Litigation Fund will be proposed as a new fund for the coming budget, with residuals resulting from lack of indebtedness to remain in this Fund for future expenses in litigation cases.. Monies for this Fund would be transferred directly from the General Fund Balance to this Fund, as will monies for the Open Space and Housing Funds. They will be shown separately on the Budget when presented to the voters as recommended by the auditor.The meeting was adjourned at 6:13 p.m.
Respectfully submitted,
Kathy Gollow, Secretary.
Posted: April 20, 2009 April 13, 2009
The following minutes of the Board of Finance meeting are submitted subject to approval at the next meeting.
Special Budget Meeting
Chairman, Michael Jackson called the meeting to order at 5:00 pm.
Present:
Members: Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Selectmen: Mark Lyon, Nick Solley
Guests: Linda Savitsky, Tony BediniThe purpose of the Special Budget meeting was to receive and discuss initial proposed expenditures for the 2009-2010 Town’s General Fund, Nonrecurring Capital Fund, Open Space Fund and Housing Fund from the Board of Selectmen.
Financial Procedures Review:
Ms. Linda Savitsky expressed her pleasure in meeting with the Boards and reviewed her background experience in local and state governmental finance. She had been engaged by the Board to review the financial operations of the Towns and make recommendations in accordance with statutory responsibilities and internal control structure of the Town.Ms. Savitsky had met with town employees involved in matters of finance. She presented a draft of her recommendations, which suggested greater efficiency could be achieved if a thorough review of the financial operations were done and written policies and procedures were documented. The responsibilities for managing the financial operations are spread among the First Selectman’s office, Treasurer, Board of Selectmen and Board of Finance. Significant Issues included:
* The physical environment where the majority of financial functions are performed is inadequate for the level of work required.
* Noting the Town has benefited from the collective knowledge and dedication of its workers, she made the Boards aware that there is no succession plan in the event that some individuals who are at, near or beyond normal retirement age, may desire to retire.
* The current accounting system was not developed as an integrated Fund Accounting Application. While the current level of reporting is accurate, timely and detailed, there are too many records maintained on a manual basis which leads to duplicative work.Ms. Savitsky’s preliminary recommendations included:
* Reorganizing the space allocated for the financial operations so that the area is completely segregated. This would provide better working conditions and allow each person to have their own work area. Space must be included for the Treasurer and records.
* Issue an RFP to acquire an integrated Financial Management system (software & hardware) to include all fiscal functions of the Town. A cost benefit analysis should be conducted to determine if Payroll/HR recordkeeping should be included. Analysis should also be considered as whether to acquire a server based system or ASP environment with web access. There are systems available that specialize in small-town needs.
* Review Town Hall environment to insure that server and equipment have a “clean” power source and appropriate storage. Consideration should be given to installation of a wireless network with sufficient controls.
* Upon acquisition and implementation of a new financial system, a full encumbrance system should be implemented for better financial controls.
* Develop written policies and procedures as the system is implemented which will be updated on a periodic basis. This will start the process of planning for succession in key positions.
* Review and update job descriptions (financial positions) including new technology and to insure segregation of duties.
* Prepare a succession plan for Town Hall staffing needs.
* Consider contracting for part-time Financial Management Services to provide the Town with a CFO. Washington does not need a full time CFO, but someone on an “on call” basis to deal with issues that continue to arise related to overall financial management and stewardship. This function should also include accounting oversight. Currently the Town contracts with someone to write the MD&A; this could be done by a part time CFO likely at a cost savings. Changes in Auditing standards require the Town to have a significant role in the preparation of financial statements. This individual should be involved in the development of the succession plan.
* Review the management of the Retirement Plan including all service providers. It is good practice to review this on a periodic basis, to insure that the Town is paying reasonable fees for the services provided.
* GASB 45 is currently effective for governments. The Town is a Phase 3 government which means that the statement must be implemented for the 6/30/2010 audit. The Town should take the necessary steps to prepare for this standard.Recommended Next Steps included:
* Meet with the BOF/BOS to review the report in its entirety.
* Assist in prioritization of implementation.
* Provide FY 10-FY11 Budget estimates for implementation based upon actions by the BOS/BOF.
* Develop a full implementation schedule.Preliminary pricing estimates were also included. Ms. Savitsky noted her willingness to continue her services on an hourly basis; however, the number of consulting hours may be less based upon services provided by a successful vendor.
These recommendations will be reviewed and discussed in detail by both Boards for future considerations. The Boards noted their appreciation to Ms. Savitsky for her expertise and efforts on behalf of the Town and will communicate further with her.
PROPOSED 2009-2010 PRELIMINARY BUDGET:
The Selectmen presented their initial budget proposal for the coming fiscal year.
General Fund Expense: $3,951,125 1.6% increase Nonrecurring Net Capital Expense: $1,156,900 .6% increase Total G.F. & NRCEF Expense: $5,018,125 .6% increase Education Net Expense: $9,316,763 3.1% increase 45.95% of Education budget. An attempt by the Selectmen to maintain a 0% increase in the overall budget was unsuccessful as certain areas were beyond their control.
The initial proposal included the following major items:GENERAL FUND:
* A “0%” increase for employees’ compensation.
* An increase of $17,000 in 020 Health Insurance. Actual costs will not be available until May 1.
* Postage expense from most areas has been transferred to 021 Office Expense. This includes the purchase of a postage machine.
* An increase in 032 Winter Maintenance of $39,000 for materials.
* An increase in the 044 Pension deposit of $15,000 as recommended by actuary.
* An increase in the 048 Judea Cemetery Line to assist the New Preston Cemetery.All areas were discussed with comments in the following areas:
002 Assessor: CAMA support system: This line item of $3,953 was returned to the budget. It had not been included in the 2008-09 budget as it had been included in the Revaluation package. It is a necessary support and backup system for the Assessor’s figures. Further fee information will be requested. Additional expenses for educational courses may be considered.
003 Tax Collector: Legal ads and legal fees reduced.
006 Building Inspector: Contracted Service. Expense costs are based on a percentage of Income in this area. A decline in this year’s income was noted.
008 Elections: Based on three referenda.
Land Use Areas: Janet Hill has been relieved of secretarial duties in the Planning and Zoning areas as she takes on new duties as Land Use Coordinator. She will continue as secretary for Inland Wetlands Commission. Shelley White will serve as secretary to the Planning, Zoning, ZBA and Conservation Commissions. High legal fees are anticipated in the forthcoming year, and whether this item should be budgeted separately will be investigated further. Recommendations from a study of the Land Use area are being followed and improvements are being seen in this area, though hard to quantify financially.
017 Town Hall: Increases in electric costs are due in part to a meter now shared with the old firehouse building. Fuel oil costs are high at $2.45/gal, which had been contracted through a consortium with other towns and schools. It was suggested the Board seek a price differential allowance if we remain a member of the consortium; however, membership in the consortium is contracted close to a year in advance. Utility costs are taken into account when renting the upstairs of the building.
019 Surety Bonds and Insurance: It had been anticipated that worker’s comp costs might decrease but cases remaining open continue to drive costs up.
020 Health Insurance: Actual costs will not be available before May 1 according to insurance company regulations. Various plans, higher deductibles, health savings accounts, etc. are all being considered in an attempt to reduce costs. These were discussed in detail. More information will be forthcoming. Mark noted he did not want to increase health insurance costs to employees with a 0% increase in their payroll anticipated.
021 Office Expense: All postage costs, including a possible postage machine, have been moved to this line item.
026 Police: A proposal by the Governor to increase the Towns’ responsibility from 70% to 85% for costs for Resident Trooper services remains pending, though this has not been included in the budget estimates. Most towns are against this proposal. This would require the necessity of a functioning police chief in order to continue with the services of town constables. Additional services, such as jail, etc. currently provided by the State would also become the responsibility of the towns. The sharing of troopers with other towns has been discussed.
031 Tree Work: Increase in amount of work needed.
032/033 Highways: Increase in cost of materials.
035/036 Sanitation: Increase in cost of rental of land. All hauling contracts, as well as running of transfer station, are currently out to bid.
048 Judea Cemetery: Increase to $6,000. New Preston Cemetery has requested assistance due to diminishing funding from endowment. Town would be required to take over cemetery if unable to remain operational. It was suggested this item may be transferred to the Capital account as a one-time expense.
NONRECURRING CAPITAL EXPENDITURES:
Discussion included:Police Boat: May be postponed. Current boat is not in good shape and was not designed for heavy use.
New emergency repeater for radio tower at Fenn Hill is required as the current repeater will not be legal in 2010. Backup is installed at Devereux. May move current one to that location.
New truck: to maintain replacement cycle as planned.
Open Space and Housing funding will no longer be included with Capital Fund expenditures. They will be voted on as separate items. This will be reviewed with the Town’s auditor. They are proposed at $75,000 and $25,000, respectively.
FINANCIAL PLANNING MODEL:
An updated financial planning model was provided by Jack Field. This will be revised as the budgeting process continues.The meeting was adjourned at 7:00 pm.
Respectfully submitted,
Kathy Gollow, Secretary
Posted: March 27, 2009 March 16, 2009
The following minutes of the Board of Finance meeting are submitted subject to approval at the next meeting.
Present: Jack Field, Michael Jackson, Craig Schoon, Jack Boyer, Rex Swain
Alternate: Liddy Adams
Selectmen: Mark Lyon, Nick Solley
Treasurer: Linda McGarr
Guests: Susan Payne, Tony Bedini, Peter Tagley
Chairman Jackson called the meeting to order at 5:00 p.m.
The Board immediately entered Executive Session to discuss a matter regarding possible real estate acquisition.The Board re-entered the Regular Meeting at 5:32 p.m.
108 New Milford Turnpike:
The Board discussed a proposal set forth by the Conservation Commission and the Board of Selectmen to purchase a 30+/- acre parcel at 108 New Milford Turnpike in New Preston financing the purchase through the Open Space Acquisition Fund. This property is the only substantial undeveloped property with extensive frontage on Route 202 in the Village of New Preston that is contiguous to densely populated residential and commercial areas. In addition to preserving open space, the property also meets another objective of the Town’s Plan of Conservation and Development to enhance village centers. (See attached report from Chairman of the Conservation Commission.) Funds currently total $652,700 in the Open Space Acquisition Fund. Proposed purchase price of the property is $500,000.Following discussion, Michael Jackson made a motion that the Board approve the project as to its fiscal feasibility and forward it to a town meeting with the Board’s endorsement. Jack Boyer seconded the motion. Motion unanimously passed.
Minutes:
Minutes of the February meeting were accepted as submitted.Tax Collector’s Report:
The Tax Collector‘s report noted 97.22% of this year’s taxes had been collected. The Report was accepted as submitted. The Grand List was filed at $1,280,000,000 +/- but remains subject to changes received from the revaluation company, as well as the Board of Assessment Appeals. Rex Swain raised concerns about the necessity to check the revaluation work provided to the Town by Total Valuation. Whether to go on record with these concerns will be investigated further.Treasurer’s Report:
Treasurer Linda McGarr reported she had moved funds as requested. Actual transfers will be shown in her next report. Treasurer’s Report accepted as submitted.Financials:
Financial Reports were reviewed.
* Winter Maintenance costs will exceed budgeted numbers by the end of the season due to the many storms this past winter season.
* Funds remaining in the Boat Launch Fund, in addition to LoCIP grant funds anticipated for this project, will be transferred to the Capital Fund once assured that the project is complete.
* The Town has recently received an Aa3 rating from Moody Investors.
* First Selectman Lyon reported he had submitted a list of “shovel ready” projects as part of the federal stimulus plan. He would be pleasantly surprised if we actually received the funding as it seems the bulk of the funds will be made available to more urban areas.
* While Educational Cost Sharing and Local Capital Improvement Program grants are scheduled to remain the same, the Town may lose 20% of other state grant funds in the next fiscal year. These would include 1/3 of the Town Aid Road grant, while Bridge grant funds may not be available at all. Currently budgeted funds are intact.Education:
Jack Field reported the Region 12 budget is a work in progress, apparently headed toward a 1.5% increase as recommended by the Superintendent. Repair projects will be included with $100,000. earmarked for the three elementary schools. The Superintendent’s ad hoc committee of Tony Bedini, Andy Engle and Charlie Boucher continue to work with the Superintendent and the three First Selectmen to enumerate repair needs in the three elementary schools. This Committee feels it is critical that the issue of school maintenance management be addressed immediately, as well as the structure of the school maintenance budget. Jack will investigate to determine if project estimates and bids could be sought directly from qualified contractors, which would shorten the time for work to begin by eliminating the issuance of RFP’s. Projects to be completed while the building is empty could then begin as soon as the children are on vacation and hopefully be completed by start of the 2009-10 school year.Tony will attend a meeting of the Roxbury Boards of Selectmen and Finance to discuss these issues. He felt it imperative that the management issue be straightened out and that proper direction is given to accomplishing these tasks. The three towns should meet together with the Region in an effort to stop the poor building maintenance practices and the costs associated with it.
Pension Contribution:
In accordance with the recommendation received from the Town’s pension consultant, Jack Boyer made a motion to approve an ex-budget appropriation not to exceed $6,000 for contribution to the Town’s pension fund. The motion was seconded by Barbara Brown and unanimously passed. (The suggested contribution for the 2008-09 contribution to the pension had not been received prior to the vote on the town budget in May, 2008.)Alternate Vacancy:
This position will be discussed further.Board of Education:
Mark Lyon reported four of the Town’s six seats on the Board of Election will expire on June 30, 2009. The Selectmen are considering holding elections by a referendum vote on the same date as that scheduled for the Region #12 budget, rather than at a town meeting. This will be offered for consideration at a special town meeting scheduled in April prior to the referendum scheduled for May 5th.Preliminary 2009-2010 Budget Considerations:
First Selectman Lyon reported the initial proposal for the Town’s General Fund budget indicates an increase of 1.3%. The following items continue to be discussed:
* Reviewing options and programs in health insurance and payroll costs. Consideration is being given to an increase of 0%-1.5% in employees payroll, as are responsibilities for health insurance costs, etc. These numbers are not yet available. Total employee compensation will be reviewed.
* Increased clerical staff in the Land Use area is required due to change in personnel duties.
* A possible increase in the Town’s share of Resident Trooper’s costs from 70% to 85% is being suggested by the State. This will be discussed further at the State level.
* Increase in Winter Maintenance material costs.
* Costs for Transfer Station and Recycling.
* Reductions in VNA, Library, Annual Repairs and Newsletter line items are being considered.
* Capital: All areas are under review.Michael Jackson suggested a 15% reduction in income should be anticipated due the country’s current financial turmoil.
Peter Tagley agreed the Region’s current maintenance positions should be reviewed. He also noted his support of the proposed purchase of the former Moore property by the Town.
The meeting was adjourned at 6:45 p.m.
Respectfully submitted,
Kathy Gollow
Secretary
February 23, 2009
The following minutes of the Board of Finance meeting are submitted subject to approval at the next meeting.
As Revised
Present: Jack Field, Michael Jackson, Craig Schoon, Jack Boyer
Alternates: Liddy Adams, A.J. DuBois
Selectmen: Mark Lyon, Nick Solley
Treasurer: Linda McGarr
Guests: Tony Bedini, Valerie Friedman, Dick Carey, Ken Cornet, Joe Mustich
Chairman, Michael Jackson called the meeting to order at 5:00pm.
Minutes: Minutes were accepted as submitted.
Tax Collector’s Report:
Report accepted as submitted.Treasurer’s Report:
The Board asked the Treasurer to look into moving the smaller accounts into the Trust account. Report accepted as submitted.Alternate Vacancy:
No action taken.A.J. DuBois arrived at 5:10pm. Mark Lyon and Liddy Adams arrived at 5:15pm.
Financials:
Mark Lyon noted that the Town has used 80% of the winter maintenance budget at only 60% through the season. Mr. Lyon went on to state that the Tax Collector is on target with collections. Mark spoke about the reevaluation, the Town is still holding back half of the company’s payment until the work to be completed is acceptable. Barbara Johnson, Tax Assessor expects to file the grand list by Friday (February 27th), she will continue working with the reevaluation company on adjustments. Taxpayers who have met with the reevaluation company should be receiving updated reevaluations this week and future adjustments will be made by the Assessor. Work will continue through the Board of Assessment Appeals. Ken Cornet spoke about his feeling that the whole reevaluation should be thrown out; he feels that the work was statistically off the mark.Nick Solley arrived at 5:25pm.
Michael Jackson asked Mark Lyon if he felt the entire reevaluation was flawed. Mr. Lyon answered that in discussions with Barbara Johnson, the Tax Assessor, she is unhappy with the process but feels it can be corrected and that there is nothing to gain by starting over again. Mark went on to say that part of the problem was that the reevaluation company was behind schedule and the assessor did not have the opportunity to review assessments before they were sent out to people. Valerie Friedman felt that people were just looking for a fair and consistent reevaluation.
Education:
Jack Field began discussion on the new leases for the three elementary schools and the proposal to attach a list of necessary repairs to the leases. There appears to be no mechanism in place to follow up once the leases are signed as to whether the work has been completed. Mr. Field stated that there would be little state reimbursement, if any, on repairs done at the school since repairs are included as part of the Operating budget.Tony Bedini picked up this discussion by circulating a list of needed repairs to Burnham School as an example of an add-on to the lease. He noted the pricing is estimated and has not been vetted to bids. Mr. Bedini presented a slideshow showing some of the work/repairs needed at Washington Primary School. Michael Jackson asked who was responsible for the obvious lack of attention to this maintenance. Jack Field noted the schools are a Town asset and are leased to the Region. The Board of Education is in charge, via the Superintendent, Business Manager, and down to the maintenance personnel. Tony Bedini felt that everything is handled by reaction, things are not done proactively. He felt the building deterioration was due to lack of maintenance and willful destruction of the building. Jack Field went on to say that Region 12 is the only region in which the towns own the school buildings. He circulated a document entitled “Unbundling” of Region Budget for 2008-9. He felt the 20-year school leases should not be signed as they don’t adequately address maintenance issues. Michael Jackson agreed and suggested a one-year rollover lease. Town Attorney David Miles is reviewing the leases.
Meeting adjourned at 6:50pm.
Submitted subject to approval,
Pamela L. Osborne, Acting Secretary
January 26, 2009
The following Minutes are submitted subject to approval at the next meeting.
Present: Jack Boyer, Jack Field, Michael Jackson, Craig Schoon, Rex Swain
Alternate: A.J. DuBois
Selectmen: Mark Lyon, Nicholas Solley
Treasurer: Linda McGarr
Guests: Arthur Mulligan, The McKellan Group, Insurance Agent, Enrico Melaragno, Charles Heaven & Co., Inc., Linda Savitsky, Valerie Friedman
Chairman Michael Jackson called the meeting to order at 5:00 p.m.
Health Insurance:
Arthur Mulligan of The McKellan Group provided information on employees’ health insurance coverage and costs, noting the Board’s previous decisions to self-insure have resulted in lowering premiums and overall costs. Various health plans are being discussed for next year’s budget, including higher deductibles and employees’ payroll deductions for health savings accounts or health reimbursement accounts. These plans would put more responsibility on the part of the employees, while providing the management of the funds in their hands. Mr. Mulligan also noted the dental program has also proven itself over the past few years through self-insuring. He will provide further information on upcoming costs and plans as soon as it becomes available in April.Audit:
Rico Melaragno of Charles Heaven & Co., Inc. presented the 2007-08 Audit of the Town’s Funds. It has been the Board’s policy to maintain a Fund Balance equal to 1 1/2 month’s expenditures. The audit noted municipal credit rating agencies stress that an upper grade investment credit should maintain an unreserved undesignated general fund balance in excess of 7%. The Town’s reserve equates to 8%. The development and implementation of an Accounting Procedures Manual was recommended. The Board accepted the Audit.Linda Savitsky:
Ms. Savitsky reported she had met with a majority of the Town’s personnel and appreciated the response she received. While her study is not complete, she felt the Town should consider purchasing a municipal accounting system as part of next year’s budget. She felt duties need to be identified more clearly and succession planning is necessary. She will continue to meet with employees and will provide her recommendations in the near future.Financials:
Mark reported while most of anticipated income has been received on a timely basis, interest income is down about 60% and conveyance taxes are down about 40%. Expenses in the area of Winter Maintenance will most likely exceed the budget due to the number of events and increase in materials cost. Mark has issued a letter requesting frugality on the part of the employees.Budget:
Mark reported the Selectmen have been working on the 2009-10 budget. Both CCM and COG anticipate some funding reductions from the State, but an even higher reduction, as high as 50%, could be realized the following year. The total for the revised Grand List will not be know until after the revaluation is complete and the Board of Assessment Appeals has considered requests for changes.Alternate Vacancy:
A recommendation from the RTC for this vacancy has been received. Jack Boyer will seek a recommendation from the Democratic Town Committee.Meeting was adjourned at 6:40 p.m.
Respectfully submitted,
Kathy Gollow, Secretary
Meetings in 2008