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RECEIVED JUNE 30, 2010 @ 5:28 P.M.
Michele R. Grande, Redding Town Clerk
3 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
June 28, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Guffey, Mazzucco
Also present: First Selectman Ketcham, Selectman Takacs, Selectman Pemberton, Controller Gniadek, Treasurer O’Donnell, Tax Collector Moisio, a representative of the Redding Pilot and five 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 correct the minutes of the April 26, 2010 meeting, approved at the May 24, 2010 meeting, to change the motion regarding the lease package changing the ten wheel dump truck to a 1 ton pickup truck. Mazzucco, DeSalvo. Approved. Unanimous.
Motion: move that the Board of Finance accept the minutes of the May 24, 2010 meeting as submitted. Mazzucco, DeSalvo. Approved. Unanimous.
TAX COLLECTOR’S REPORT
Tax Collector Moisio reported that 100% of the budgeted tax revenue had been collected. The budgeted amount is $41,399,000, and collections totaled $41,457,000. She added that all the tax bills for fiscal 2010-2011 had been mailed out.
Mrs. Moisio presented the Suspense List, the list of delinquent personal property and motor vehicle taxes (over three years), totaling $17,050.94. She will continue to pursue the collection of the delinquent taxes.
CONTROLLER’S REPORT
Mr. Gniadek highlighted his written report:
- Revenue: expected to be $116,000 below budgeted amount.
- Expenses: estimated end of year expense, $462,000.
- Unreserved Fund Balance: based on the year end estimates for expenses and revenue, the net operating contribution to the Unreserved Fund Balance will be $346,000. This amount, along with the budgeted addition of $607,000 will bring the balance in the Unreserved Fund Balance to $2,741,000, or about 6.1% of next year’s budgeted expenses.
- IT Shared Services: the cutover to utilization of the Redding BOE IT staff to service the Town occurred on June 22, 2010.
- Bonding: $20,000 of bonding closing costs will be expensed in the current year budget.
- MIRMA: 20+ towns have formed a group and hired legal counsel to dispute and seek reduction of the assessment. The cost to the town is estimated at $1200.
- Station Road Bridge: the revised bidding processed closed on June 24, 2010. There were no bids on the project.
- New phone system: an upgrade in the phone system will be made, with no cost increase.
- Georgetown Streetscape Project and Police Station addition: both are out to bid, with closings scheduled for July 14 and July 20, respectively. Both projects are 100% funded through state and federal grant programs.
Redding Board of Education: Mr. Alvarez reported Dr. Gaspar, Chairman of the Redding BOE, provided the following preliminary update:
- End of year health insurance reserve fund is estimated to be $340,000, about $100,000 more than estimated at last month’s meeting, however they are still waiting for actual claims to be made.
- End of year surplus is estimated to be $120,000, and if the estimate is realized, the board may designate $20,000 to the health insurance reserve fund and potentially return $100,000 to the Town, however the Board of Education still needs to close out the fiscal year-end and deliberate on any excess surplus.
- 2010-2011 budget:~ the BOE will begin the next fiscal year with a favorable variance of $130,000 in the salary account.~ This is due to a change in the preliminary salary estimate, calculated when the budget was prepared some six months ago.
INVESTMENT POLICY
The revised Investment Policy was reviewed. Discussion centered on types of investments options. Further review of investment options will be explored by a subcommittee of Mr. Mazzucco and Mr. Guffey. A report and adoption of the Investment Policy will be scheduled for the next meeting.
WPCC FUNDING
John Shaban, Chairman of the Water Pollution Control Commission, requested assistance from the Town for payment of operating expenses for the sewer treatment facility in Georgetown. Mr. Shaban alerted the Board of Finance to a problem situation last November, and the situation improved slightly at that time, but has since deteriorated. He explained that the Georgetown Land Development/Georgetown Special Taxing District is delinquent in payment of the “delta” payments for the plant operation in excess of $300,000, and the monthly “delta” payments of $24,500 continue to accrue on a monthly basis. Currently the WPCC has a deficit of $60,000. The WPCC requested $60,000, plus $24,000 on a continuing monthly basis until the situation with the Georgetown project and ownership changes. The WPCC has initiated cost savings methods for plant operation where possible. The “delta” payments have been determined through a mediation process and are considered to be fair.
Mr. Chris Lynch of Georgetown Land Development was present. He explained that GLDC has been unable to make their tax payments to the Georgetown Special Taxing District; therefore the GSTD has been unable to make payments to the WPCC for their share of the operating costs of the plant. He anticipates a change in ownership that will provide the sources for payment of the past due payments, but was not able to provide a closing date for the change in ownership.
Discussion of the situation continued. The Town of Redding has an obligation to continue the operation of the treatment facility. Mr. Shaban added that the WPCC has considered options to reduce operating costs including:
- Reduction in the operating process, engineers report this cannot be accomplished;
- Conversion back to a smaller plant, considered to be difficult and costly;
- Reconfiguring the plant to accept septage, a $100,000 investment to plant plus the inconvenience of trucks bringing material into the plant.
At this point, none of the options is desirable. At this time, the WPCC is unable to pay the district’s bills.
Motion: move that the Redding Board of Finance authorize an advance of $60,000 to the Redding Water Pollution Control Commission in accordance with the letter from WPCC Chairman Shaban and to carry this item as a monthly agenda item to further assess the financial needs of the WPCC. Mazzucco, DeSalvo.
Further discussion followed on the mechanism to advance the funds and eventual repayment of the advance. The motion was amended.
Amended Motion: move that the Redding Board of Finance authorize an advance of $60,000 to the Redding Water Pollution Control Commission in accordance with the letter from WPCC Chairman Shaban and to carry this item as a monthly agenda item to further assess the financial needs of the WPCC, and pursuant to proper structure/mechanism to advance the funds in consultation with town counsel and auditors. Mazzucco, DeSalvo. Approved. Unanimous.
BONDING STATUS UPDATE
Treasurer O’Donnell reported the Standard & Poor’s rating call is scheduled for Thursday, July 1, 2010.
The bond sale is schedule for July 14, 2010. Financial advisor Matt Spoerndle anticipates a 3.5% rate for the sale.
REPORTS FROM INDIVIDUAL BOARD MEMBERS
Mr. DeSalvo reported the Region 9 Board of Education anticipates an end of year balance of about $100,000. They have allocated 50% of the end of year balance to the Health Insurance Reserve Fund and 50% to the Capital Reserve Fund. In addition, they transferred $50,000 from current operating budget from certified salary account to the non-certified pension fund, and transferred $83,752 in savings from refinancing to the Capital Reserve Fund. The BOE is also in the process of reviewing the line item transfer process usually done at the end of year, changing to a monthly review of transfers.
EXECUTIVE SESSION
Motion: move that the Board of Finance recess to executive session to discuss non-union salaries and litigation. Mazzucco, DeSalvo. Approved. Unanimous.
Mrs. Ketcham, Mr. Takacs, Mrs. Pemberton and Mr. Gniadek were invited to be present.
The meeting recessed at 8:52 pm
RECONVENE
Chairman Alvarez reconvened in public session at 9:18 pm
Motion: ~Move that the Redding Board of Finance approve a transfer of $48,755.60 from FY 2010-11 Contingency to Salary accounts as of July 1, 2010 as recommended by the Board of Selectman. DeSalvo, Dolan. Approved, Unanimous
ADJOURNMENT: 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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