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RECEIVED MAY 27, 2010 @ 8:30 A.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
May 24, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan (7:34pm), Guffey (7:32pm), Mazzucco, Simeonidis
Also present: First Selectman Ketcham, Selectman Takacs, Controller Gniadek, Treasurer O’Donnell, Tax Collector Moisio, a representative of the Redding Pilot and four 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 accept the minutes of April 26, 2010 as submitted. DeSalvo, Mazzucco. Approved. 3-0-1. Mr. Simeonidis abstained.
Amendment: page 2, the motion regarding the lease agreements for vehicles:
Motion: move that the Board of Finance accept the minutes of the May 4, 2010 meeting as submitted. Mazzucco, DeSalvo. Approved. Unanimous.
Mr. Guffey arrived, 7:32 pm & Mr. Dolan arrived, 7:34 pm
TAX COLLECTOR’S REPORT
Mrs. Moisio reported that 100% of the budgeted tax revenue had been collected. Her office is in the process of preparing the tax bill for mailing.
CONTROLLER’S REPORT
Mr. Gniadek highlighted his written report:
- Revenues: total revenues at the end of April represented 98.6% of the budget.
- Expenses: expenses are still estimated to be approximately $266,000 favorable to the budget at year end.
- Fuel Consortium: fuel prices were locked in; 30,000 gallons of gasoline at $2.59/gallon; 20,000 gallons of diesel fuel at $2.59/gallon; and 25,000 gallons of fuel oil at $2.435/gallon
- Backhoe Lease: a 5-year lease for the backhoe has been set up, at a 3.98% interest rate and a $1.00 buyout at the end of the lease
- CMERS challenge: Mr. Gniadek’s concerns were to be presented to the Pension subcommittee on 5/19.
- Station Road Bridge: the bidding process for this project is complete. Only one bid was received and that was considerably higher than estimated. Mr. Gniadek indicated that an addition to the initial LOCIF funding can be requested.
- Sprinkler system at Town Hall: The drawings have been completed and will be reviewed by the Building Department and Fire Commissioner.
- Well: a new well was drilled for Town Hall. The final cost, $11,015 will be charged to the current operating budget.
- Replacement Fence at Recycling Center: this project will be completed by June 30th at a cost of $17,275. This cost will be charged to the current operating budget.
Director of Finance and Operation for the schools, Peggy Sullivan, was present to report on the state of the Redding and Region #9 Board of Education finances. For the Redding schools, the operating budget is over expended in unemployment compensation, pension funding and substitute accounts. She anticipates covering those shortfalls with savings in electricity and professional services. Any additional savings realized in the budget year ending June 30, 2010, may be designated to the Health Insurance Reserve Fund, if needed, as determined by the Board of Education. Mrs. Sullivan reported that if the recent medical claim history continues through the end of the fiscal year, the Health Insurance Reserve Fund balance at June 30, 2010 may be approximately $225,000, which represents approximately one month’s claim
history. The Board of Education tries to achieve a medical reserve balance of two months. Region 9 will likely direct any remaining moneys to the capital fund account. Refinancing of the bonds resulted in good savings for the Region.
INVESTMENT POLICY DRAFT
The draft of the Investment Policy was reviewed. Minor changes in the content were suggested.
Motion: move that the Board of Finance accept the Investment Policy as amended. DeSalvo, Simeonidis.
Questions regarding the inclusion of a state statute reference followed.
The motion was amended as follows:
Motion: move that the Board of Finance accept the Investment Policy as amended for a first reading, to be finalized at the next meeting. DeSalvo, Simeonidis. Approved. Unanimous.
DISCUSSION OF UPCOMING BONDING
The discussion centered on the bonding of $10,315,000, converting from short term bonding to long term financing. Treasurer Peggy O’Donnell asked the board for agreement on the size of the bond, the length of bond and the bond rating agency. The cost of bonding will be between $60,000 and $65,000.
- Size: discussion of bonding the entire amount or a partial sum followed. There was consensus to bond the entire amount, $10,315,000.
- Length of bond: discussion of bonding for 15, 18 and 20 years followed. There was consensus to bond for 20 years.
- Bond rating agency. There was consensus to use Standard & Poors for rating, per the bond advisor’s recommendation.
Motion: move that the Redding Board of Finance initiate the process for bonding $10,315,000 for 20 years, using Standard & Poors. DeSalvo, Mazzucco. Approved. Unanimou.s
The bond sale is expected to be scheduled for July 14, 2010 by telephone at the Redding Town Office Building.
ADMINISTRATIVE MATTERS
PUBLIC COMMENT
James Miller, Middlebrook Pond Road: Mr. Miller asked for clarification on the financer for the backhoe. Mr. Gniadek responded that it is California First Bank. Mr. Miller also questioned the use of average assessment and noted that the number changes throughout the year. Mrs. Moisio indicated that the average assessment may have slight changes during the year; however the changes do not affect the homeowner’s assessment unless there has been some modification to the property, and will remain constant until the next revaluation.
ADJOURNMENT: Motion: move to adjourn. Mazzucco, Dolan. Approved. Unanimous.
The meeting was adjourned at 8:44 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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