RECEIVED APRIL 30, 2008 @ 9:00 A.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
MEETING
April 28, 2008
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan(7:39 pm), Kearney (7:37 pm), Simeonidis, Viscio
Also present: Controller Hutvagner, Treasurer O’Donnell, First Selectman Ketcham, and three members of the public
Chairman Alvarez called the April 28 2008 meeting to order at 7:34 pm in the Hearing Room of the Town Office Building.
APPROVAL OF MINUTES
Motion: Move to approve the minutes of the March 17, 2008 meeting as corrected. Simeonidis, Viscio. Approved. 3-0-1. DeSalvo abstained.
Correction: page 1, second motion on page should read:
Motion: move that the Redding Board of Finance direct the Town Departments and the Redding Board of Education go back and review the current operating budget, understanding the gravity of the situation as discussed, to look for additional savings without significantly impacting the services they are obliged to provide, and report back to the Board of Finance at their next meeting, March 31, 2008.
Motion: Move to approve the minutes of the March 31, 2008 meeting as submitted, DeSalvo, Viscio. Approved. Unanimous.
Motion: Move to approve the minutes of the April 7, 2008 meeting as corrected. Viscio, DeSalvo. Approved. Unanimous.
Correction: page 2, under Region #9 discussion, the increase in budget to Redding is 3.3% for a total budget of $10,977,960.
Motion: Move to approve the minutes of the April 11, 2008 meeting as submitted. Simeonidis, Viscio. Approved. Unanimous.
Mrs. Kearney arrived (7:37 pm)
PUBLIC COMMENT
James Miller: comments regarding the process of approving the purchase of the Levine property, the decision to fund the purchase through BANS, and question of why the amount borrowed was more than the original purchase. Mrs. Ketcham and Mr. Hutvagner responded that the decision to go to BANS was because the property did not sell as quickly as originally anticipated. The amount borrowed reflected an increase due to additional costs of borrowing, survey, engineering and subdivision plans associated with the intended sale of the property. Mr. Hutvagner will provide the Board of Finance with specific details at the next meeting.
Mr. Miller also asked about the allocation of the proceeds from the sale. Mrs. Ketcham provided a letter from Frank Cleary, Bond Counsel, stating that where the tax-exempt obligation, as in the present situation, also financed other properties, the sale proceeds must be reasonably allocated between the properties. The allocation should be proportionate with the value of each parcel financed at the time of purchase.
Mr. Miller asked if the Town was carrying additional costs associated with the property, such as insurance on the existing structures on the site and other maintenance costs.
Jeanne Wendschuh: commented that she does not think the taxpayer has a clear picture of why taxes are being increased, and suggested that the Board of Finance provide a summary of the four major components of expenditure: Town expenses, Redding Board of Education, Region #9 Board of Education and Fund Balance.
FUEL PRICES 2008-2009 BUDGET
Mr. Hutvagner reported the Town will participate in the consortium that the schools participate in for the purchase of fuel for the next budget year. Director of Finance for the schools, Peggy Sullivan, anticipates prices at $2.75 for home heating oil, $3.00 for diesel and $3.00 for unleaded gas, with the prices to be locked in August. Mr. Hutvagner believes this will be a 25-50 cent savings over the prices he has from the current vendor and would be in line with what he has included in the proposed budget.
2008-2009 BUDGET
Mrs. Ketcham reported that many residents have requested specific information regarding the impact of the tax increase and revaluation on their property. The Assessor was able to assemble the information for every property in town. The Redding Pilot will also provide the information “online”. The information is based on the estimated mill rate of 21.07.
Board members discussed the fact that this budget is not driven by expenditures, but a drop in revenue and a need to replenish the fund balance. Board members discussed the need to get this type of information to the public. Chairman Alvarez and Vice Chair Dolan will prepare a “letter” to be published in the Redding Pilot
Mrs. Ketcham also provided a comparison of effective tax rate with neighboring towns. The effective tax rate is expressed as a percent of market value, and is based on 4th quarter sales. This comparison puts Redding in the middle at 1.45%, with a high of 1.60% and a low of 1.35%
YEAR-TO-DATE BUDGET REPORT/CONTROLLER’S REPORT
The financial documents were reviewed. Board members asked Mr. Hutvagner to provide the Revenue Shortfall estimate report as often as changes occur. The current anticipated shortfall, as of today, is $178,207. Recent changes included a FEMA final payment and prior year tax refunds.
EXECUTIVE SESSION
Motion: Move to executive session for a discussion of litigation. DeSalvo, Kearney. Approved. Unanimous.
Mrs. Ketcham and Mr. Hutvagner were invited to be present.
The meeting recessed at 8:47 pm
ADJOURNMENT
Motion: move to adjourn. Viscio, Simeonidis. Approved. Unanimous.
The meeting was adjourned at ___________ pm
Respectfully submitted,
Mary Maday, Recording Secretary
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