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REDDING BOARD OF FINANCE
MEETING
December 17, 2007
Filed subject to approval
Present: Alvarez (Chairman), Dolan, Kearney, Simeonidis, Viscio
Also present: Controller Hutvagner, Treasurer O’Donnell, Selectmen Ketcham, Miller &Takacs, Tax Collector Moisio, Superintendent of Schools Fossbender, members of the Redding Board of Education, Region #9 Board of Education and school administrators. Also present, one member of the public and representative of the Redding Pilot.
Chairman Alvarez called the December 17, 2007 meeting to order at 7:35 pm in the Hearing Room of the Town Office Building.
APPROVAL OF MINUTES
Motion: Move to approve the minutes of the November 26, 2007 meeting as corrected.
Viscio, Kearney. Approved. 2-0-4. Alvarez, Simeonidis, Viscio and M Kearney abstained.
Correction: page 2, add Mr. Alvarez to the Revenue Committee
ELECTION OF VICE CHAIRMAN
The Nomination Committee met and recommended Joe Dolan for position of Vice Chair.
Motion: move to accept the recommendation of the Nomination Committee to elect Joe Dolan to the position of Vice Chair. Simeonidis, Kearney. Approved. Unanimous.
DISCUSSION OF BUDGET PARAMETERS WITH THE BOARDS OF EDUCATION AND BOARD OF SELECTMEN
Mr. Alvarez began the discussion with comments regarding the recent information that there will be a revenue shortfall this fiscal year, principally due to the delay in the Georgetown Land Development project. The Controller was asked to review the revenue and expense information, and prepare information on where discretionary spending can be reduced or eliminated. He indicated the Board of Finance will likely ask the Board of Education to review their budgets in a similar manner to determine any expenses that could be reduced or eliminated.
The Controller estimated a shortfall in revenue of approximately $900,000 and has estimated a savings in departmental reductions/postponements of approximately $800,000.
David Lewson, Chairman of the Redding Board of Education, and Superintendent Fossbender responded to the request to re-examine current expenses and will consider the information in the preparation of the budget for the next fiscal year. Information on anticipated expenses, enrollment and programs was provided.
Julie Pemberton, Chairman of the Region #9 Board of Education, provided information with regard to trends and budgetary information for the high school.
First Selectman, Natalie Ketcham, reported the delay in the Georgetown Land Development Project is the primary cause of the revenue shortfall. The project is now scheduled to begin activity in late spring/early summer.
2006-2007 AUDIT REPORT
The final audit report was presented. The Management Letter will be provided after the first of the year, for review by the First Selectmen. The Board of Finance will receive the Management Letter at their January meeting.
Motion: move that the Redding Board of Finance accept the Audit Report dated 6/30/07. Dolan, Viscio. Approved. 4-0-1. Kearney abstained.
DISCUSSION OF 2007-2008 REVENUE & EXPENSES
Controller Hutvagner reported on the Town side of budget. Town Department Heads carefully reviewed their budgets and made recommendations where expenses could be reduced or postponed. Some fees, i.e. Building Department & Recycling Center, may be increased as of January 1. Discussion of the savings/reductions followed.
Tax Collector Moisio reported that an alternative she is pursuing is a February 1 Tax Sale. There are 25 pieces of property with delinquent taxes. The owners will be notified of the Tax Sale. The process takes about 12 weeks and, if successful, the Town would collect the taxes, interest and legal fees.
The board members discussed the importance of carefully monitoring the budget over the next few months.
The Board of Finance asked the Board of Education to review their current operating expenses to determine if they can achieve any cost savings, with a target of $100,000. The Board of Education was asked to report back to the BOF at their January meeting.
YEAR TO DATE FINANCIAL STATEMENTS
The financial statements were available for review. Board members asked Mr. Hutvagner to provide regular updates on projected savings and expenses.
TREASURER COMMENTS
Mrs. O’Donnell reported a BAN sale was held on December 13, 2007, for $1,450,000 at 2.986% and there were seven bidders. Mrs. O’Donnell also reported that the Long-Range Committee meeting is scheduled for Tuesday, December 18, 2008.
Heritage House has received a good deal of interest, but no offers as yet. The house has been winterized.
PUBLIC COMMENT
James Miller: comments regarding snow plowing on his street and damage to three mailboxes. He also asked who was paying for the planned employee holiday party. Mrs. Ketcham noted that the employees are providing all the food and paying a fee to cover other expenses, not tax payer money would be involved in the party. The party is scheduled to take place after the close of business.
ADJOURNMENT
Motion: move to adjourn. Viscio, Dolan. Approved. Unanimous.
The meeting was adjourned at 9:15 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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