These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
JANUARY 16, 2001
REGULAR MEETING
1. CALL TO ORDER
Paul Henault, Chairman, called the Regular Meeting of the Board of Finance to order at 6:02 p.m. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Candace Fitzpatrick, Peter Askham and James Belfiore. Also present were Kevin Kane, Finance Director, Anita Mielert, First Selectman, Joseph Townsley, Superintendent of Schools, David Holden, Business Manager, Mary Margaret Girgenti, Board of Education Chairman, and other interested parties.
2. APPROVE MINUTES
December 19, 2000 Regular Meeting
Ms. Fitzpatrick moved to approve the minutes of the December 19, 2000 Regular Meeting. The motion was seconded by Mr. Askham and carried unanimously.
December 22, 2000 Special Meeting
Ms. Fitzpatrick moved to approve the minutes of the December 22, 2000 Special meeting, as amended. The motion was seconded by Mr. Belfiore and carried unanimously.
January 4, 2001 Special Meeting
Chairman Henault tabled approval of the January 4, 2001 Special Meeting minutes.
3. BUDGET TRANSFER REQUEST FROM RESERVES
Board of Education Space Needs
Chairman Henault noted that the request for four modular classrooms was discussed at the November BOF meeting and has since been approved by the BOS. Dr. Townsley stated that the cost for the four modulars is $320,000 and after State reimbursement the cost to the Town is $219,000. He noted that the $320,000 includes all costs, as well as a $20,000 contingency. Dr. Townsley stated that these modules are needed for the next school year and a total of seven modules will be needed for the 2003/2004 school year.
Mr. Askham questioned whether the Town will bond for modules as part of the renovation plan. Dr. Townsley stated that he is currently working on a plan for the schools. Mr. Holden stated that the reimbursement for the modules will probably be received in July, 2002 because the grant application is due June 30, 2001 and the legislature acts on it the following spring.
Mr. Askham questioned the amount of funds taken from reserves thus far. Mr. Kane stated that in addition to this $320,000 there has been $67,000 taken from the same section of the Charter which leaves an available balance of $170,000. He stated that if funds are needed for an operating budget crisis situation the funds would be taken from a different section of the Charter.
Ms. Fitzpatrick moved to approve the Board of Education’s request for a supplemental budget amount of $320,000 to be taken from RESERVES, according to Section 908c of the Town Charter, for the purpose of purchasing portable classrooms. The motion was seconded by Mr. Belfiore and carried unanimously.
4. OPERATING BUDGET TRANSFERS
Mr. Kane referred to his January 4, 2001 memo regarding requested fiscal year 2000/2001 budget transfers (Addendum 1). He stated that these are normal transfers which take place this time of year to clean-up the budget. Mr. Kane explained that the un-negotiated salary funds are a result of salaries which were settled after July 1, 2000. He stated that $45,720 was the amount budgeted for un-negotiated salaries.
Chairman Henault questioned whether there are additional funds available in the major medical employee group insurance account. Mr. Kane stated that the amount of funds needed depends upon staffing. Ms. Fitzpatrick questioned whether any salaries still need to level out. Mr. Kane stated that the only additional expenses would be related to overtime or miscellaneous items.
Mr. Belfiore moved to approve the budget transfers as detailed in Mr. Kane’s memo of January 4, 2001. The motion was seconded by Mr. Askham and carried unanimously.
5. PROJECTED GRAND LIST GROWTH
Chairman Henault noted receipt of Mr. Gardner’s January 16, 2001 memo regarding Grand List growth. He stated that the estimated Grand List growth is approximately 1.55%, but may be reduced to 1.42% if the tax status of Eno Farms is changed. Mr. Kane noted that last year the Grand List growth was approximately 2.6%.
6. FISCAL YEAR 01/02 MILL RATE PROJECTION
The board reviewed Mr. Kane’s projected mill rate calculations (Addendum 2). Chairman Henault stated that the impact from the Volunteer Fire Department’s tax abatement program would result in a reduction of $56,000 of tax revenue. He noted that with a 4% budget increase, by both the BOS and BOE, and the use of $200,000 in surplus, the tax rate increase would be 3.78%. He pointed out that if the BOE budget increases by 11% and the BOS budget increases by 6.5%, using $200,000 in surplus, would equate to a 9.88% tax increase. He noted that these figures are based on a 98% collection rate.
Mr. Belfiore questioned why the Town may lose the tax revenue from Eno Farms. Ms. Mielert responded that the Town is in negotiations with the Assistant Attorney General and the terms of the agreement have not yet been finalized. She stated that the loss of tax revenue from Eno Farms may be a result of the negotiations.
Mr. Kane confirmed that the mill rate projection was done assuming 7% debt retirement. He pointed out that if the debt retirement remains at 7% over the next two years the Town should be able to pay out all of the capital projects which have not been bonded.
Chairman Henault noted that the BOF previously discussed limiting the CNR budget, for the next fiscal year, to $725,000 for the BOE and BOS combined.
Mr. Kane stated that the transfer from RESERVES for the portable classrooms should be taken from Section 908a of the Charter.
Ms. Fitzpatrick withdrew her motion to approve the Board of Education’s request for a supplemental budget amount of $320,000 to be taken from RESERVES, according to Section 908c of the Town Charter, for the purpose of purchasing portable classrooms. Mr. Belfiore withdrew his second.
Ms. Fitzpatrick moved to approve the Board of Education’s request for a supplemental appropriation in the amount of $320,000 to be taken from RESERVES according to Section 908a of the Town Charter for the purpose of purchasing portable classrooms. The motion was seconded by Mr. Belfiore and carried unanimously.
7. REVIEW 2001/02 BUDGET GUIDELINES IN PREPARATION OF BOF/BOS/BOE MEETING
Members of the BOF agreed to recommend a 4% budget guideline which could result in a tax increase of 3.78%.
8. OTHER BUSINESS
Chairman Henault stated that CCM is holding a workshop on school construction on February 1st. He noted receipt of Ms. Mielert’s January 9th memo outlining the resolution passed by the BOS regarding the high school project and the formation of an oversight committee. Mr. Askham and Mr. Wade were appointed to represent the BOF on the oversight committee.
Mr. Belfiore questioned Dr. Townsley’s letter to Ms. Mielert stating that capital project submissions are due to the State by June 30th. Dr. Townsley stated that he is working on a calendar of events regarding school projects. He explained that capital improvement projects for next year have to be submitted to the State by June 30th and can be cost adjusted until October 30th. He suggested that a potential date for a school referendum be in November.
Ms. Mielert reported that the Town has received two grants which do not require matching Town funds. She stated that the Police Department has received $75,000, as the lead agency representing 6 towns, to provide a program to combat underage drinking. Ms. Mielert stated that a $7,500 grant was received from Northeast Utilities to perform an energy audit of the library.
9. ADJOURNMENT
Mr. Belfiore moved to adjourn the meeting at 6:50 p.m. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
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Paul W. Henault, Chairman Kathryn D. Wilde, Clerk
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