RECEIVED July 29, 2010 @ 8:30 A.M.
Michele R. Grande, Redding Town Clerk
2 pages
REDDING BOARD OF FINANCE
REGULAR MEETING
July 26, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Guffey
Also present: First Selectman Ketcham, Selectman Takacs, Controller Gniadek, Treasurer O’Donnell, Tax Collector Moisio, a representative of the Redding Pilot and three members of the public.
A quorum was not present. Discussion of the agenda items followed.
APPROVAL OF MINUTES
This item was tabled to the next meeting.
TAX COLLECTOR’S REPORT
Tax Collector Moisio reported the final day for tax payments was August 2, 2010. She added that an additional $41,000 in back taxes had been collected.
CONTROLLER’S REPORT
Mr. Gniadek highlighted his written report:
1. Revenue: expected to be $6,600 below budgeted amount.
2. Expenses: estimated end of year expenses, favorable to budget by approximately $462,000.
3. Unreserved Fund Balance: based on the end-of-year estimates, the net operating contribution to the Unreserved General Fund will be $456,000, an increase of $110,000 from last month’s report. This contribution, along with the budgeted addition of $607,900 will result in an estimated Unre served Fund balance of $2.85 million at year end. The estimate is subject to the year end audit.
4. Bonding: The Town received a AAA rating from S&P, which is the highest bond rating and an upgrade from the Town’s previous rating.. The bid sale on July 14 attracted a low bid by Fidelity Capital Markets of 3.04%, which was the lowest true interest bid for a 20-year bond of its size in the State of Connecticut. The Town received a total of six competitive bond bids. Only July 26, 2010, the bond was settled and the proceeds were received by the Town. The Town paid off all of it’s outstanding BANs and only has long-term debt remaining..
5. Station Road Bridge: a bid was received from Dayton Construction for $83,210, approximately $23,000 above the estimate. Mr. Gniadek has applied for and received the additional funding from the LoCIP fund.
6. Georgetown Streetscape Project: The low bid for the project was received from M. Rondano for $827,583. This project is fully funded through combined State and Federal grants.
7. Police Station addition: The bid for this project has not been finalized as yet.
TREASURER’S REPORT
Mrs. O’Donnell reported the bond settlement was today, and approximately $10,400,000 was received. Of that amount, approximately $6,000,000 was immediately used to pay off the outstanding BANs.
Mrs. O’Donnell reported the status of the current investments:
- Union Savings, Investment Account, $10,825,342
- Union Savings, General Fund, $200,000
- MBIA Class Plus Account, $83,455
- STIF-State Treasurer’s Investment Fund, $2,284,441
Total General Fund Monies = $13,393,238
INVESTMENT POLICY
Mr. Guffey reported he and Mr. Mazzucco met with Treasurer O’Donnell and revised the Investment Policy. This will be discussed further at the next meeting.
WPCC UPDATE
Mrs. Moisio reported the Water Pollution Control Commission continues to experience difficulty meeting the operating expenses of the Georgetown treatment facility. The engineers of the plant, Tighe & Bond, have been contacted regarding steps that could be taken to reduce operating costs. Some suggested changes in the use of chemicals should result in a savings. Mr. Valinski of Tighe & Bond has offered to contact DEP regarding the lowering of the permit limits, and thus a reduction in required manpower.
The WPCC current Usage account is about $125,000, with current unpaid invoices of about $102,000.. The Assessment account is currently $171,000. This account cannot be used to pay for operating expenses, but a loan against the account could be made. The current operating deficit is estimated at $22,000 a month.
Mr. Alvarez suggested the WPCC borrow against the Assessment account at this point. Mrs. Moisio also reported that discussions with GSTD continue, and the WPCC is taking the necessary legal steps to protect the plant.
PUBLIC COMMENT
No public comments were made
The meeting was concluded at 7:55 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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