Town of Redding - Board of Finance Minutes 09/30/2008

Also present: First Selectman Ketcham, Selectman Takacs, Controller Hutvagner, Treasurer O’Donnell, Tax Collector Moisio, School Director of Finance Sullivan, five members of the public and representative of the Redding Pilot.

Motion: move that the minutes of the August 26, 2008 meeting be approved as submitted. DeSalvo, Simeonidis. Approved. 3-0-1. Mrs. Kearney abstained.

Jeanne Wendschuh, Deer Spring Road: requested information about the Fund Balance as of June 30, 2008, any impact of the current economic problems on tax collection, and contingency plans for the town if the economic conditions continue. Mr. Alvarez responded that these questions would be answered during the meeting.

1. Object Summary report for 2007-2008: the end-of-year unexpended balance of $20,000 was transferred to the Health Insurance Reserve Fund. The report also showed an unexpended amount of $302,687 which was the reduction in spending as agreed to with the Board of Finance.

2. Health Insurance report: the June 30 balance in the Health Insurance Reserve Fund was $477,000. Mrs. Sullivan reported that claims for August were high, but that is typical. The reserve fund for Region #9 is approximately $155,000 and Easton is approximately $35,000.

3. Year-to-date expenditures as of September: Mrs. Sullivan anticipates a shortfall in the fuel account of approximately $80,000. To cover the shortfall, the district made a reduction of one bus serving Redding Elementary School and John Read Middle School (approx. $57,000) and has salary savings (result of teacher retirements) of approx. $80,000.

4. Unanticipated capital items: water supply at JRMS became a problem shortly before school opened in September. The water storage tank was filled with trucked-in water (13,000 gallons). The well has been deepened and is now producing sufficient water. The cost for the water & repairs is approximately $25,000. In addition, the boilers at Redding Elementary School failed. Repairs to the units have been completed and the cost of repair is approximately $20,000.

5. Capital Projects: The list of capital projects is being reviewed and updated. Items on the list include septic system at RES, repair & replacement of HVAC for west wing at RES, installation of solar panels at RES, window replacement in 1957 wing of RES, flooring at RES, water storage tank at both RES & JRMS, and flooring at JRMS.

Mrs. O’Donnell reported that People’s United Bank will no longer provide financial advisor service to the Town of Redding. Several years ago, the town transferred accounts from People’s United Bank to Union Savings Bank. The financial advisory service is a paid service. Mrs. O’Donnell recommended using the advisor used by Region #9 Board of Education, Matt Spoerndle with Phoenix Advisors. Mr. Spoerndle was formerly with People’s United Bank and provided the financial advisory services for both Redding and Region #9. The Board of Finance was in agreement with the recommendation.

Mrs. O’Donnell reported she and Dan Heller (former Treasurer) met with officers of Union Savings Bank to review the safety of funds. The town’s funds are fully collateralized and are as safe as they can be. The town has small amounts of funds in the STIF account and in MBIA.

Tax Collector Moisio provided information on the current year tax revenue. The collection rate as of the end of September was at 52.4% of budgeted amount. Adjustments have been made to the Grand List by the Assessor. She and the Assessor and Controller meet regularly to keep their records accurate.

Currently the Town of Redding is not foreclosing on any properties. One property that scheduled for a tax sale has paid the past taxes in full.

Mrs. Moisio is exploring payment of taxes via a new company that handles credit card payments. In addition she is working on doing ACH payments with the bank. She will provide additional information as it becomes available

State-owned property was discussed. Mrs. Moisio reported that the State of Connecticut owns properties and rents them out. The renter is responsible for the payment of taxes. Four of the eight properties have past due payments. Since the property is state owned, collection is an issue. Mr. Viscio will be asked to explore the issue and options further.

Controller Hutvagner provided the final June 2008 financial statement. In addition, a list of the small funds, with revenue and expenses, was provided for review. Mr. Hutvagner reported the Tax Collector, Assessor and Controller’s office records are in complete synch.

The Town’s energy conservation hours have reduced some expenses. The electric consumption for the Town Office Building for the month of July was 35% lower than the previous year. The Board of Selectmen expended the hours until the end of October and will discuss other contingency planning at their next meeting.

First Selectman Ketcham reported the GLDC bonding for infrastructure work has been postponed to the end of the year in light of recent economic factors. Mr. Soler is working with the State on finalization of plans for the parking garage that will be state-owned and service the train station, as well as provide parking for the area.

Mrs. Ketcham reported the service provider for the Highway Department furnaces (2) recommended repair/replacement of the furnaces. Three quotes were received for the repair/replacement work. The Board of Selectmen recommended acceptance of a bid for $9,137 for the work.

Motion: move that the Redding Board of Finance approve the recommendation of the Board of Selectmen to transfer $9,137 from Contingency to Highway New Equipment for the Highway Department. Dolan, DeSalvo. Approved. Unanimous.

The date for the November meeting (11-17-08) was discussed and tentatively changed to November 27, 2008. A report from the Park and Recreation Department and a preliminary report from the Assessor are on the agenda for the October meeting. A report from the Mark Twain Library will be scheduled for the November meeting.

Motion: move that the Board of Finance recess to executive session for a discussion of litigation, personnel and negotiations. Kearney, DeSalvo. Approved. Unanimous. Mrs. Ketcham was invited to be present.