BOARD OF FINANCE MEETING MINUTES MONDAY, APRIL 19, :30 P.M. GREENE COMMUNITY CENTER

Transcription

1 BOARD OF FINANCE MEETING MINUTES MONDAY, APRIL 19, :30 P.M. GREENE COMMUNITY CENTER Chairman Matthew Hoey called the meeting to order at 7:30 p.m. Present: Board Members: Michael Ayles, Louis Federici, Kenneth Gamerman, Matthew Hoey, James O Keefe, David Egan and Kimberly Brockett Town Officials: BOE Officials: Others: Media: First Selectman Joseph Mazza, Finance Director Sheila Villano, Fire Commission Members Ken Wilson and Clerk Traci Brinkman Accounting Manager Linda Trudeau and BOE Member John Ireland Nicoleta McTigue from Blum Shapiro Mike Graziano, taping for GCTV 1. Receive presentation of Fiscal Year Audit Report from Blum Shapiro. Nicoleta McTigue from Blum Shapiro went over the audit report with the board. She explained that it is the town s responsibility to prepare the financial statements and Blum Shapiro s responsibility to give an opinion on them. Ms. McTigue said they look at the internal controls, document them and get an understanding of how the town operates. They do not give an opinion on the internal controls, but do test them. The then issue several reports and provide an opinion on the financial statements. Ms. McTigue said that Blum Shapiro once again gave the town an unqualified clean opinion and had no findings. She then went over the various reports in detail for the board and answered any questions they had. Motion: Upon a motion made Mr. Gamerman and seconded by Mr. Egan, the board voted unanimously to accept the audit report as presented by Blum Shapiro for FY Vote: In Favor: Ayles, Federici, Gamerman, Hoey, O Keefe, Egan and Brockett Opposed: None Abstaining: None 1

2 2. Public Forum (Limited to 3 minutes on agenda items) None 3. Approve minutes of: 3.1 Regular Meeting Minutes of March 15, 2010 Mr. Gamerman asked if there was any further clarification about his question on Page 6 related to the drop in the percentage obligated for the Adams project. Ms. Villano said she stated it was probably due to changes in encumbrances or a canceled encumbrance. Mr. Gamerman clarified his statement on page 7, that some of these projects were not presented at the public hearing. He also noted that he voted in favor of the bond resolution for the Lakes project. Mr. Ayles stated that on Page 2, Mr. Gamerman had a question about the design fees for the security system not the HVAC system. He clarified his statements on Page 2 that he was concerned that design fees were not included. Mr. Ayles noted a correction to Page 5, there was a comment at the BOF meeting not the SBC meeting about them approaching their secretarial services budget. Ms. Brockett asked for clarification regarding the $687,126 received from the Excess Cost Grant. The minutes made it seem like this was the first of three payments. Ms. Trudeau noted that it is the first of two payments. The first payment is 75 percent and the next payment will be 25 percent of the grant. Motion: Upon a motion made by Mr. O Keefe and seconded by Mr. Egan, the board voted unanimously to approve the minutes of the March 15, 2010 meeting as amended. Vote: In Favor: Ayles, Federici, Gamerman, Hoey, O Keefe, Egan and Brockett Opposed: None Abstaining: None 4. Correspondence: 4.1 Standing Building Committee Minutes 2

3 Mr. Gamerman noted Mr. Bloom s comments regarding some type of guidelines when they are moving money between projects, because the legal notice give substantial responsibility to the SBC so they need to be careful. He added that Mr. Ayles said they have a right to move money around as per the wording in the bond resolution. Mr. Hoey said the way it is written it does allow the town to move money. He added that the larger question is if under their purview the SBC is allowed to this and that probably goes back to the charter and when the SBC was established. Mr. Hoey said they should probably pass this onto the Board of Selectmen for clarification as to who has the legal authority to move money the SBC, the entity for which the funds were appropriated (Town or BOE) or the BOF. Mr. Mazza said in his personal opinion it would be the Board of Selectmen or the Board of Finance. Mr. O Keefe said he thinks that the mechanical operation of the funding would fall back to the BOF. Ms. Villano clarified that the money is not being moved around, it is how the bond authorization is allocated. Mr. O Keefe said he thinks this is a good thing to circle back around on. He added that normally the lead project would be $10,000 to $20,000 under, but here the amount is significantly under. Mr. O Keefe said he believes they need to address a policy. Mr. Mazza said in the past when funds are left over for a project they don t spend it. Mr. Hoey said this also sets up a potential conflict between boards. Mr. Ayles said it is clear the SBC is not comfortable with the responsibility and Mr. Bloom wanted clarification. And if they are uncomfortable it needs to be looked at. Mr. Gamerman asked when the Lakes Roof project would be completed if it is approved at referendum. Mr. Ireland said it would not be done until next year. 4.2 Draft Pension Minutes of March 15, 2010 Mr. Hoey said the year to date return is 14.2 percent. He added that the target on investment return is 7 percent so 14 sounds good, however they did have a 13 percent drop the previous year. Mr. Hoey said they are a little above where they were a year ago. 3

4 Mr. Hoey noted a memo from In-House Counsel/Purchasing Pam Millman for clarification about a question Mr. Federici raised at the last meeting regarding self-addressed stamped envelopes for the data mailers. The town hired a company and they are assuming responsibility for those stamps. 5. Review and accept report of expenditures for the Board of Education for March Mr. Ireland said the BOE will be within budget for the year. They have expended percent of the budget compared to 63.6 percent the prior year at this time. He then went over the major budget categories with the board as well as the warrants. Mr. Federici noted discussion in the BOE minutes related to the Energy Block Grant award. Mr. Ireland said they are spending $160,000 on projects and a lot is being reimbursed. The BOE only has to spend $10,000 and there will be a very quick payback on these projects. He added that they will be done over the summer. Mr. Gamerman said Special Services is almost expended, yet security is hardly touched. Ms. Trudeau said Special Services are contracted services for special education. She added that they will be over in this account, but will try to make it up in other accounts. There was a brief discussion concerning the mediation process for the nurses contract negotiations. Mr. Hoey noted there was nothing paid for workers compensation in March. Ms. Trudeau explained that it is billed quarterly. Mr. Ayles asked for clarification regarding the energy projects. He added that the cost totals $155,000 minus the $11,000 contribution from the BOE so it is $144,000 after subtracting that and the grant is for $89,631. Mr. Ayles asked about funding for the rest. Mr. Ireland noted that the grant is $89,000 and they have other incentives particularly coming from the electric company. Mr. O Keefe stated that the federal government extended unemployment and he asked if they are paying benefits as a result of this. Ms. Trudeau said there is one they are being billed extended benefits for. 4

5 Mr. Gamerman asked about the reason for four different transportation providers for special education. Ms. Trudeau said they have to use different companies based on the need and where the student is going. She added that they are looking to go out to bid for special education transportation for the coming year. Mr. Egan asked about a payment to Learning Foundations. Ms. Trudeau said it is reading software for students who need assistance in reading. She added that they went out to bid and the bid was awarded to Learning Foundations. Mr. Gamerman asked about payment to a sports trainer. Ms. Trudeau said they have a contract with them and this payment was for the winter season. It was noted that a trainer is present at all the sporting events at the high school. Mr. Brockett asked about a $3,000 payment to K&G graphics. Ms. Trudeau explained that this was for course catalogues at the high school. Ms. Brockett asked about a $15,000 payment to BKM that was a prior year encumbrance. Ms. Trudeau said she spent two months chasing them down for the bill. Ms. Brockett said the town has a continued in force worksheet and she asked if they could get a similar schedule from the Board of Education. Motion: Upon a motion made by Mr. O Keefe and seconded by Mr. Gamerman, the board voted unanimously to accept the report of expenditures for the Board of Education for March in the amount of $4,245,830. Vote: In Favor: Ayles, Federici, Gamerman, Hoey, O Keefe, Egan and Brockett Opposed: None Abstaining: None 6. Review and approve expenditures for the Town Government for March Revenues Ms. Villano said they recognized 96.7 percent of the revenue budget compared to percent last year at this time. She added that the same problem areas are building permits and interest incoming which is still lagging. Ms. Villano said the Fire Department should be at 66 percent, but they still 5

6 feel they will achieve their budget. Youth & Family Services as well also feel they will make their budget. She added that fire was at 61 percent last year and exceeded it the end of the year. Mr. Wilson said he stopped in to see Ms. Villano and while they do believe they will hit their $850,000 revenue budget, they are seeing some down trends. He added that they have had a decrease in calls to the top four facilities in town and that is going to impact them. In addition they are down 60 ambulance runs. Mr. Wilson said after looking at everything that has to be billed they do feel they will hit the $850,000, but it is important to know this in case the trend continues. Mr. Gamerman noted that the Police and Parks and Recreation Departments are down in revenues although he knows they usually pick up toward the end of the year. Ms. Villano said she doesn t know why the police revenues are behind, but it is a small amount. She spoke to Parks and Recreation Director Rick Maynard and he thinks it is just timing and that he will make his budget. Ms. Villano said that there is $1 million left to collect on tax collections. She will keep an eye on it. Mr. O Keefe asked if the banks still pay on the foreclosed properties or if they wait until they flip the property. Ms. Villano said she will check on that. Expenditures Ms. Villano said they have obligated 77.6 percent compared to 77.8 percent last year at this time. She added that Registrar of Voters has $12,000 left, but they may need a transfer depending on how they end up after the referendum. Ms. Villano said the repair and maintenance line in Public Works is $21,000 over expended and they met with Ralph Casey. She added that he is working on $30,000 worth of repairs to town vehicles and has incurred the expenses, but has not billed the departments yet. Ms. Villano said there is a little lag on the account, but it will wash itself out in the end. She added that they usually start canceling encumbrances in May. She added that next month she will be requesting a transfer for the assessment and revaluation line under the legal account. Ms. Villano said Ms. Millman is working with Milano and Wanat the tax appeal attorneys. She added that for the 2002 revaluation there were 108 cases and they paid $320,000 (average of $3,000) per case in legal fees. The latest 2007 revaluation there are 136 cases and if you project $3,000 a case then they would be paying a total of $408,000 and if you add in 10 percent for 6

7 inflation that is where they would expect to see the fees. They have spent $318,000 through March so it is trending close to where it should be. She added that expenses have been incurred earlier than they thought. Ms. Villano noted the amount they are saving defending the cases outweighs the cost of the legal fees. She added that the goal for the current budget is to break even. She added that there will be at least $500,000 in savings in various departments including contingency to help offset the loss in revenues. Mr. O Keefe asked about the tree removal account. Mr. Mazza said that account will go over. Mr. Gamerman asked about $12,000 in the fire department budget paid to St. Raphael for screening. Mr. Wilson said they had eight new firefighters and St. Raphael s does the testing which includes a physical, tuberculosis testing, immunizations and drug testing. Ms. Brockett asked about $1,200 for a Firefighter I class. Mr. Wilson explained that this class is for volunteers since all the career staff have Firefighter I training and in some cases even Firefighter II. Ms. Brockett asked about another $4,500 payment for onsite billing training for Youth & Family Services. She added that the total is now upwards of $20,000 to $25,000. Mr. Mazza said this will only be once a year now and he has spoken to Lyne Landry about this. He added that as they get more proficient this will drop o once a year, but there is some criteria they have to meet in billing. Mr. O Keefe asked about a fee paid to Westcott and Mapes for the Inland Wetlands Commission. He questioned if that was a complex application fee. Ms. Villano explained that the fee gets booked to a balance sheet, which is then offset by payment from the applicant. Medical Benefits Ms. Villano said in the February report they had six claims that totaled $700,000 in expenses. She added that only one has exceeded the $175,000 stop-loss and six are over $100,000. Mr. Federici asked about the revenue line item in Medical Benefits. 7

8 Ms. Villano said that is the contributions from town employees. Continued in Force There was a discussion about the crosswalk improvements around the Green. Mr. Federici said he has heard complaints from a number of people with regard to the town spending money on this. Ms. Villano explained that the money came from a grant and the town s match was $60,000 that was appropriated for the project in The grant took a long time to come in. The project was bid twice because the first bids came in high and then the state needed to review the contract amount. She added that no money for this was in the current or next year s budget for this project. The majority of funding was from a grant. Motion: Upon a motion made by Mr. O Keefe and seconded by Mr. Egan, the board voted unanimously to approve the expenditures for the Town Government for March in the amount of $2,027,547. Vote: In Favor: Ayles, Federici, Gamerman, Hoey, O Keefe, Egan and Brockett Opposed: None Abstaining: None Mr. Federici recused himself from voting on expenditures related to Porto Tire Service and Ms. Brockett recused herself from voting on expenditures related to Commercial Air Services. 7. Committee Reports 8. Old Business 8.1 Discussion of the use of for public interaction and FOI. Mr. Hoey stated that he was unable to make the FOI meetings. He questioned what s are subject to FOI. It was his understanding that only specific ones related to business transacted on the part of the town and people would need to specify who the s are from and who they are to. Mr. Federici said according to FOI rules it seems that any town business is open to scrutiny. The FOI Commission will not direct disclosure, but will respond to requests by individuals if disclosure is not forthcoming. He added that they have an obligation to disclose s between the entire board or any communication between a board, employee, town official or another board. Mr. Federici said you can have caucuses with your party on and it not be subject to FOI. 8

9 Ms. Brockett said she asked what types of s are subject to FOI and was told it had to be specific for transacting business. Mr. Hoey asked then that an with Ms. Villano relative to budget preparation or for a clarification on things they do on a monthly basis would then not be subject to FOI. Mr. O Keefe said it would not be subject to FOI if it is just general information. If you give the finance director instructions as the chair of the Board of Finance then it is subject to FOI. Mr. O Keefe said the question remains as to what board members use with respect to the public. Mr. Hoey said something to consider is retention requirements. He added that in the past they have copied the clerk on s as a way to retain them and have them stored by the town. Mr. Egan said there has to be a central repository that deals with all these requests and standard procedures across every governmental agency. Mr. Federici stated that FOI does not have a retention policy. Ms. Trudeau said the State Library has a retention guide. Mr. Hoey asked the board how they felt about the use of personal to be posted on the town website. He added that their telephone numbers and addresses are already there and is another form of communication. Mr. Hoey said he would leave it up to the individual to make the determination. He added that he would put his personal on there, but would have to set expectations relative to responding. Mr. Hoey said he has three addresses and responding to immediately is not realistic. Mr. O Keefe said he has the same problem, he has three accounts and does not check all three all the time. He added that his concern is the archiving requirement. Mr. O Keefe said he would be in favor of an system through the town server that would then leave the town to worry about retention because his concern is running afoul of the legalities. Ms. Villano stated that the town could provide town addresses for the board members, however if they respond to those s then the public would have their personal address anyway. Mr. Ireland noted that he has addresses forwarded to his personal and when he responds his personal does not show up. Mr. Hoey said he believed was forwarded to the Economic Development Specialists Blackberry similar to what they are seeking so he did not see how it was 9

10 a problem. Mr. Villano said she can look into it again. Mr. Hoey said in the meantime if anyone wants to put their personal on the internet until they get a determination they can forward it to the clerk. Mr. Ayles said he attended the Plan of Conservation and Development Workshop March 31. He added that there were 45 residents present and it focuses on how to guide growth. Mr. Ayles said the new plan does not need to be adopted until 2012, but they are trying to gather as much input as possible. He added that there was a breakout session which focused on residential development, tourism, cultural arts and industrial and commercial development. The next workshop is scheduled for April 29, 7:30 p.m. and will focus on what kinds of services the town wants or needs. Mr. Ayles said the committee appreciated having a representative from the BOF there. Motion: Upon a motion made by Mr. Ayles and seconded by Ms. Brockett, the board voted unanimously to adjourn the meeting at 9:40 p.m. Vote: In Favor: Ayles, Federici, Gamerman, Hoey, Egan and Brockett Opposed: None Abstaining: None Respectfully submitted, Traci K. Brinkman Clerk Board of Finance 10