RECEIVED FEBRUARY 2, 2010 @ 8:30 A.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
January 25, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), Dolan (7:45 pm), Guffey, Mazzucco, Simeonidis
Also present: First Selectman Ketcham, Selectman Takacs, Selectman Pemberton, Controller Gniadek, Treasurer O’Donnell, Tax Collector Moisio, Highway Superintendent Sanford, a representative of the Redding Pilot and 12 members of the public.
The meeting was called to order by Chairman Alvarez at 7:30 pm in the Hearing Room of the Town Office Building.
APPROVAL OF MINUTES
Motion: move that the Board of Finance accepts the minutes of December 21, 2009 as submitted. Mazzucco, Simeonidis. Approved. Unanimous
GASB 45 RESULTS
Evan “Bill” Woollacott, Jr. of Hooker & Holcombe, Inc. addressed the board with the findings and recommendations concerning GASB 45 for the pension/retirement funding. With this information finalized the Audit report for 2008-2009 is ready for release.
Mr. Dolan arrived (7:45 pm)
TAX COLLECTOR’S REPORT
Tax Collector Moisio reported the collection rate of actual tax levy of 71.9% and she anticipates a large deposit from one of the largest banking institutions tomorrow. The collected amount to date represents 73% of the budgeted tax revenue. The collection rate is typical of previous years at this time.
Mrs. Moisio also reported the State of Connecticut is selling the six or seven state-owned properties purchased for the proposed Route 7 expansion. Once sold, these properties will return to the Town’s tax rolls.
CONTROLLER’S REPORT
1. Expense change: CL&P changed the rate code for the Community Center, reducing the annual charge by an estimated $4,000.
2. Grants: monies for the Town Aid Road Grant, approximately $133,000, has not been released by the State. It was recently announced that the bonding of the funding will be put on the Bonding Commission agenda.
3. 2010-2011 Budget Workshop recap: The town-side of the budget, which represents 28% of the total budget, was reviewed at the budget workshop. Most of the Department heads are projecting a minus or zero increase from the current year budget. Areas showing increases are in road repair, retirement of bans, contractual salaries for Highway, Police & Communication, medical insurance, and one additional police officer. In addition, the Mark Twain Library has requested an increase.
4. Municipal Leasing options: Mr. Gniadek has identified three companies that provide these services and he will explore/evaluate that option for certain capital purchases, specifically computers and vehicles.
5. Municipal Shared Services: Mr. Gniadek, First Selectman Ketcham and Police Chief Fuchs attended a seminar on this topic and they are exploring the concepts with regard to police fire, IT, and back office functions. Any regionalization/sharing of service is dependent upon the willingness & desire of other towns/communities/agencies.
LONG RANGE FINANCIAL PLANNING COMMITTEE REPORT
Mrs. O’Donnell reviewed the Long Range Financial Planning report with the board. The report listed items of discussed with proposed year the funding would be required, along with an indication whether the funding should be from the operating budget, the capital and non-recurring fund or financed through BANS/bonding.
Discussion of the plan followed. Mrs. O’Donnell reported the Committee urged the Board of Finance to begin now to create a “saving” plan to allow the funds for some of the projects to be set aside each year until the project/item is needed. There was a disconnect between this concept and the listing of many of the items listed as needed during the 2010-2011 year, which were shown as slated Capital and Non-recurring funding, as there is no opportunity to “save” for them. In addition, some of the items listed in the overall plan were small dollar amounts and board members questioned why these were listed instead of being a part of the operating budget.
BOF members questioned the classification of items to be included in Capital and Non-recurring for 2010-2011The Board of Education is currently working on an update on the estimates for the items on their list. Mr. Alvarez suggested the Committee include the useful life of each project/item to assist the planning for financing the item. Other board members suggested a definitive ranking of the needs for each year, specifically for the 2010-2011 year. Mr. Dolan stated that there is also a need to begin thinking about the concept of overlay zones for state-required affordable housing and the monies required to study or purchase land for this purpose.
Mr. Alvarez noted there is also discussion needed on the converting of BANS to bonds. No action was taken at this time, and further discussion of long-term needs & capital items will be held at the next meeting. The Long Range Financial Planning Committee will revise the report for the next meeting.
Mr. Mazzucco asked Board of Education Chair Dr. Gaspar if the Board of Education had any plans to ask the teacher’s union to renegotiate the contract. Dr. Gaspar responded that the topic was informally explored and the indication was that teacher’s union would prefer a reduction in staff rather than a contract change. The Board of Education has asked the administration for budget proposals with reductions down to a 2% increase. Regarding the NABR 10 in 10 proposal, the board members and administration have reviewed the document and recommendations carefully. Many of the proposals or suggestions would not be permissible due to state/federal mandates and legal reasons. Some of the suggestions, bulk purchasing & group purchasing are already in place. Mr. Mazzucco asked if
the Board of Education would show what a 10% decrease in spending would look like. This was a personal request; other members of the Board of Finance were not in agreement with the request. Selectman Pemberton added that the Region #9 Board of Education explored this reduction concept last year and found that state law dictates that, not including cost of capital requests & debt service, the boards of education may spend the same or more on education that they did in the previous year, but not less.
Mrs. Ketcham reported the Town’s department heads reviewed the NABR 10 in 10 proposal thoroughly prior to the budget workshop.
Mrs. Ketcham added that two more capital-type items need to be added to the Capital Items report. The parking lot at the Community Center and the access roadway to Redding Elementary School are both in need of work as a result of the winter weather. The work needed is beyond the usual pot-hole type repair covered in the operating budget.
PUBLIC COMMENT
Jeanne Wendschuh, Deer Spring Road: urged the board to read the NABR 10 in 10, check on the information presented and the conclusions the group makes.
Bob Sterling, Mountainview Drive: commented that he participated in the NABR 10 in 10 report and that the recommendations do not include the cutting of teaching staff, but suggests alternative means to reduce costs.
Mr. Simeonidis responded to comments regarding the NABR 10 in 10 proposal. He noted that the report addresses specific line items in the Town and school budgets, but the Board of Finance does not make changes to specific line items. The NABR report is properly directed to the BOE and BOS, not the BOF. He also commented that the Board of Finance was elected by the voters and is responsible to the voters; NABR represents a small group of individuals.
Julie Pemberton, Umpawaug Road: Mrs. Pemberton, speaking for herself and not as a selectman, commented that the NABR mailings do not include the names or credentials of those responsible for the information gathered and recommendations in the report, and that the public should have this information.. The Board of Finance members were identified by name and credentials during the election process. Those who serve the public should be open to public scrutiny.
Motion: move to adjourn. Mazzucco, Dolan. Approved. Unanimous.
The meeting was adjourned at 9:20 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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