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RECEIVED January 24, 2012 @4:58 P.M.
Michele R. Grande, Redding Town Clerk
2 pages
REDDING BOARD OF FINANCE
MINUTES
January 23, 2012
Present: Alvarez (Chairman),Dolan, Guffey, Mazzucco, Yonkers
Also present: Controller Gniadek, Selectmen Takacs and Pemberton, Treasurer O’Donnell, Tax Collector Moisio, and four members of the public
Chairman Alvarez called the January 23, 2012 meeting at 7:31 pm.
APPROVAL OF MINUTES
Motion: move to approve the minutes of the December 14, 2011 meeting as submitted. Yonkers. Guffey. Approved. 5-0-1. Mr. Mazzucco abstained.
Motion: move to approve the minutes of the December 19, 2011 meeting as corrected. Yonkers, Guffey. Approved. Unanimous.
Corrections: page 1, under Treasurer’s Report, lines 1 & 2, insert word “cash” before balance; same paragraph, last line, change “decent’ to “acceptable”.
Public comment
The Redding 2010-2011 Annual Report was distributed.
INVESTMENTS DISCUSSION WITH UNION SAVINGS BANK
Treasurer O’Donnell noted that Union Saving Bank representative, Mary Pat Cottrell was not able to attend the meeting. Ms. Cottrell provided a copy of the Union Savings Bank Repurchase Agreement Service. This was distributed to board members along with a copy of the latest confirmation from Union Savings Bank for the overnight investment. Discussion of collateralized funds followed. Following discussion, it was decided to ask Ms. Cottrell to come to the next meeting. Ms. O’Donnell asked that specific questions for Ms. Cottrell be submitted to her prior to the next meeting.
TAX COLLECTOR’S REPORT
Ms. Moisio reported that tax payments have been coming in and, as of today, 72.9% of the budget has been collected. She anticipates additional payments before the end of the month. For prior year taxes, $182,000 has been collected.
TREASURER’S REPORT
Ms. O’Donnell reported the cash balance in the General Fund was $9,957,132 and the cash balance in the Capital Nonrecurring Fund was $1,321,479.
CONTROLLER’S REPORT
Mr. Gniadek reported on the following:
- Revenue: a rebate check for $25,753 was received from CL&P for energy saving work done at the schools as part of the HVAC (heating, ventilation, air conditioning) Capital Project. This amount will go to the general fund for debt reduction. Mr. Alvarez noted that when the Board of Education presented the HVAC Capital Project they anticipated there would be rebates and planned for that savings to be used for the project. Mr. Gniadek will check with the town’s attorney regarding on this issue. Mr. Alvarez added that should the Board of Education need additional funding to complete the project, they could make that specific request to the Board of Selectmen.
- Expenses:~ Mr. Gniadek reported on expense variations.~ He anticipates ending the current fiscal year close to budget, even taking into account about $350,000 in principal payments that had been omitted from last year’s budget.~ The Treasurer then indicated that those payments had been missed.~ Mr. Alvarez noted that this year’s budget will have to increase by about $350,000 just to cover the overlooked principal payments.
- FEMA reimbursement: Hurricane Irene FEMA reimbursement is anticipated to be $125,000. This amount includes actual expenses and non-cash expenses (use of equipment and volunteers). The reimbursement for Storm Alfred (the October snow storm) will not include expenses for snow removal, and non-cash expenses for use of equipment or volunteers. The reimbursement will be for debris management, including tree work services. He expects that reimbursement to be 75% of the $200,000 submitted.
- Fraud Risk Assessment: The McGladrey quote for Fraud Risk Assessment was forwarded to the Boards of Education (Easton, Redding and Region 9) for consideration. Mr. Alvarez followed up with the chairs of the boards and reported that Redding (Dr. Jess Gaspar) was interested, Easton (Dr. Dan Underberger) did not feel they could finance the expense at this time, and he did not hear from Region 9 (Cathy Gombos). Mr. Gniadek added that HD Segur has prepared a free training session that will be presented on February 9, 2012 for the Board of Finance, Board of Selectmen and department heads.
UPDATED ROAD RECONSTRUCTION PLAN
Mr. Gniadek reported the new Highway Superintendent has completed a review and analysis of the 3-Year Road Plan. A copy of the plan, including specific costs, was presented. The plan includes completing work on Portland Avenue and Portland Hill Road by June 20, 3012, and plans for year 2 & 3. The board members were pleased with the detailed information that was provided.
PUBLIC COMMENT
Dr. Gaspar, Board of Education Chair, was present and reported that the Board of Education is currently reviewing the budget proposal and asked the administration to provide suggested programming adjustments that would reduce the budget increase down to 1.5%. A meeting of the three boards of Education (Easton, Redding and Region 9) is scheduled for January 24, 2012 to discuss the Central Office Budget. That budget proposal is in the range of 1.5-1.7%. Dr. Gaspar announced that John Read Middle School was nominated for a Blue Ribbon School Award.
James Miller, Middle Brook Pond Road: Mr. Miller asked what additional work in the schools would be done with the CL&P rebate money. Dr. Gaspar responded he believed the work would be used for a temperature control device at John Read Middle School.
Mr. Miller also expressed his discomfort with the discussion on investment funds. He felt the Treasurer and Board of Finance should not rely on Union Savings Bank to educate them on the investment of town funds. Mr. Alvarez noted that the board members are reviewing investments and the risk factors for the town.
Jeanne Wendschuh, Deer Spring Road: Mrs. Wendschuh asked the Board to consider capital expense items along with the operation budget, and present a total package for the voters to consider.
Michael LeBlanc, representing the Mark Twain Library: Mr. LeBlanc spoke in support of the Town’s financial support of the Mark Twain Library. He added that the Library’s fund raising events have underperformed this year and urged support for a 5% increase in the budget.
ADJOURNMENT
Motion: move to adjourn the meeting. Mazzucco, Guffey. Approved. Unanimous.
The meeting adjourned at 8:54 pm
Respectfully submitted,
Mary Maday, Recording Secretary
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