RECEIVED SEPTEMBER 29, 2010 @ 12:15 PM
Kathleen H. Miserendino, Redding Asst. Town Clerk
REDDING BOARD OF FINANCE
REGULAR MEETING
September 27, 2010
Minutes
Filed subject to approval
Present: Alvarez (Chairman), DeSalvo, Dolan, Guffey, Mazzucco
Also present: First Selectman Ketcham, Selectman Pemberton, Controller Gniadek, Treasurer O’Donnell, a representative of the Redding Pilot and five members of the public.
Chairman Alvarez called the meeting to order at 7:31 pm.
APPROVAL OF MINUTES
Motion: move that the Board of Finance approve the minutes of the August 30, 2010 meeting as submitted. Mazzucco, DeSalvo. Approved. Unanimous.
PUBLIC COMMENT
James Miller, Middlebrook Pond Road: requested clarification of the Board of Education budget issue surrounding the certified salaries. Mr. Alvarez asked Director of Finance, Peggy Sullivan, to respond to the question as part of her report to the board.
TAX COLLECTOR’S REPORT
In Mrs. Moisio’s absence, Mr. Gniadek reported that the collection rate to date is 52.76% of budget, & close to last year’s collection rate. The office has been dealing with more taxpayer calls with questions than in previous years.
CONTROLLER’S REPORT
Mr. Gniadek reported on the following:
1. Accounting Clerk position: the position was restructured to two part-time positions. The savings in benefits is approximately $30,000, about $22,000 for the current fiscal year.
2. Unreserved Fund Balance: current balance reflects the savings for the Accounting Clerk position and the retirement of the Building Official, costs related to the bond, and reimbursement for the Hanssen property. The $150,000 transfer from the Board of Education unexpended funds is attributable to the 2009-2010 fiscal year.
3. Station Road Bridge: this work is slated for completion this week, with a ribbon cutting scheduled for September 30.
4. Police Station: this project was rebid and a low bid of $622,800 was submitted by Hawley Construction. This firm did the addition for the Danbury Police Station and is very familiar with specific requirements for the project. The project is 100% funded by a STEAP grant of $500,000 and LoCip funds of $122,800.
5. Route 57/107 Intersection project: the Town is responsible for hiring an engineering firm for inspection of the project. 13 bids were received and that was narrowed down to five for interviewing by a Committee composed of Mr. Gniadek, Chief Fuchs, ZEO Flanagan and Fred Hurley (Director of Public Works, Newtown).
TREASURER’S REPORT
Ms. O’Donnell submitted a report of the current (September 27, 2010) balances in the various institutions.
Union Savings, Investment Account $15,770,939
Union Savings, General Fund, $200,000
MBIA Class Plus Account, $83,481
STIF, State Treasurer’s Investment Fund, $2,272,406
TOTAL, $18,326,826
BOARD OF EDUCATION YEAR END AND CAPITAL PROJECTS REPORT
Director of Finance, Peggy Sullivan, provided a spread sheet of the various capital projects and the status of each of the items. Of the $3,210,000 of approved budget, $657,565 has been spent to date. The remaining work is scheduled to be completed during the summer of 2011.
Mr. Alvarez asked if the remaining work would be completed within budget. Mrs. Sullivan noted that the budget allowed for some inflationary costs and the Committee is working with the contractors at this time to lock in prices for work being done next summer. Mr. Alvarez noted that if the project was under budget in one area and over in another, the Board of Education would need to request a line item transfer from the Board of Finance.
Mr. DeSalvo questioned the amount of custodial overtime for the project and the use of the operating budget rather than the capital budget to cover those expenses. Mrs. Sullivan responded that the overtime occurred over two weekends, and was necessary to have the building ready for the contracted work on the following Monday.
The fiscal year 2009-2010 ended with a balance of unexpended funds. Mrs. Sullivan reported that medical claims for 09-10 were higher than budgeted and additional monies were moved to the Medical Insurance Reserve Fund. In addition, the 2010-2011 budget for the Medical Insurance Reserve Fund was anticipated to be too low, so an additional $65,000 of unexpended funds were moved to the Medical Insurance Reserve Fund. The remaining $150,000 of unexpended funds was returned to the Town of Redding. Analysis of the spending showed the savings to be found in the Transportation Account, Utilities Account, Outside Professional Account, and Salaries.
For fiscal year 2010-2011, the budget was based on anticipated certified salaries in the teacher contract document. As a result of a calculation error in the contract document, the board of Education over budgeted their salary account by $126,000. The over budgeted amount of $126,000 will be reflected as a positive variance throughout the fiscal year. The Board of Education will deliberate, after the end of the fiscal year, on any unexpended funds and will return any excess to the Town. Mr. Alvarez noted that the Board of Education has two options for the use of unexpended funds at the end of the fiscal year, 1) Medical Reserve Fund, 2) return funds to the town.
WPCC UPDATE
Mr. Alvarez and Mr. Dolan met with GLDC representative Chris Lynch on September 7, 2010. Mr. Lynch indicated that GLDC has no available funding at present. Additional sources of funding for the project are being sought and there is a great deal of interest in the project. At the present, GLDC is not in a position to make any payments ($24,500/month) for the Georgetown Water Treatment Plant.
Discussion followed. Mr. Alvarez asked Mr. Dolan and Mr. Mazzucco to consult with the WPCC regarding plant operation savings that may be possible, either through a reduction of manpower, consultation with DEP regarding manpower requirements, reduction of plant capacity, change of plant operator, etc. Discussion included an assessment of interest charges on the money being loaned to the WPCC to cover the operating costs. The Board of Finance loaned the WPCC $60,000 in June, 2010.
The WPCC currently (9/27/2010) has a balance on hand of $63,463.14, and outstanding invoices to be paid of $66,162.32.
Motion: move that the Redding Board of Finance approve an increase in the WPCC loan of $30,000, and specify there will be no further loans until the Board of Finance has details, to the satisfaction of the Board, of how the costs may be reduced, how the payment will be secured, and whether interest will be paid. Mazzucco, Dolan. Approved. Unanimous.
Treasurer O’Donnell was instructed to transfer $30,000 to the WPCC.
INVESTMENT POLICY DRAFT
The revised Investment Policy was discussed. Minor adjustments were made to the document.
Motion: move that the Redding Board of Finance approve the Investment Policy as presented and revised at the September 27, 2010 meeting. Mazzucco, DeSalvo. Approved. Unanimous.
Legal counsel will be asked to review the repurchase agreements with the banks. Treasurer was instructed not to make any investment changes until the review by counsel was completed.
BOARD MEMBER REPORTS
Mr. DeSalvo commented on the salaries discussed at a recent meeting of the three Boards of Education. Specifically, he commented that the salaries of the Asst. Superintendent/Director of Curriculum and the Director of Finance did not take a salary increase in the 2009-2010 fiscal year, but each received a $3,000 stipend in January of 2010 for transitional work associated with the new superintendent. The previous superintendent, Dr. Fossbender recommended a 6% increase for both positions for the 2010-2011 fiscal year as a place holder. At the meeting of the three boards of education, an increase in the salaries for both positions for fiscal 2010-2011 was set at 3.7%. Mr. DeSalvo requested more visibility on issues such as this.
PUBLIC COMMENT
Mrs. Sullivan asked if the Board of Finance wished to hold the customary joint meeting with the Board of Selectmen and Board of Education in December prior to the budget planning season. Mr. Alvarez suggested meeting in December on the date of the Board of Education meeting, December 7, 2010. Mrs. Sullivan will confirm the date with the Board of Education.
James Miller, Middlebrook Pond Road: questioned what the legal responsibility was for Georgetown Wastewater Treatment Plant and Board of Finances authority to make loans to the WPCC. First Selectman Ketcham responded that the Town of Redding has an obligation to maintain the operation of the plant. The Town was ordered by the State of Connecticut to provide sewer service to the residents of the Georgetown Sewer District. The Board of Finance is making an intergovernmental loan. Mr. Alvarez will consult with legal counsel regarding the appropriate documentation for the loans.
Mike D’Agostino, Glen Hill Road: asked if the Board of Education could use unexpended funds for purposes other than Medical Reserve Fund or return to the town. Mr. Alvarez noted that other uses of monies would need to go to the Board of Finance, and any request for expenditure over $20,000 would need approval at a town meeting. Mr. D’Agostino also commented that the importance of any future investor for the GLDC project adhere to the existing Master Plan for the area.
ADJOURNMENT
Motion: move that the meeting be adjourned. Mazzucco, Dolan. Approved. Unanimous.
The meeting adjourned at 8:55 pm.
Respectfully submitted
Mary Maday, Recording Secretary.
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