Simsbury, CT - Board of Finance Minutes

Paul Henault, Chairman, called the Regular Meeting of the Board of Finance to order at 6:05 p.m. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Candace Fitzpatrick, Peter Askham, James Belfiore, Michael Wade and Mary Glassman. Also present were Kevin Kane, Finance Director, David Holden, Business Manager, Joseph Townsley, Superintendent of Schools, Police Chief Ingvertsen, Paul Fetherston, Assistant to the First Selectman, Thomas Vincent, Selectman, and other interested parties.

Chairman Henault noted that the BOE has been conducting informational meetings, regarding the high school modernization, at the public schools. Ms. Glassman questioned the timeline for the high school project. Dr. Townsley stated that if a referendum does not go before the public by March than the school project would not begin until 2004. He stated that the BOS is waiting to make a decision on the new high school project until after the November informational meetings. Dr. Townsley stated that the BOE is continuing to look at reducing the cost of the modernization and the new high school plan. Ms. Glassman requested that the BOF be provided with an update at their December 19th meeting. Chairman Henault noted that the tax implication sheet was presented at the informational meetings.

Dr. Townsley distributed and reviewed his request for the acquisition of modular classrooms for Simsbury High School (Addendum 1). He noted that there is a 6 month lead time to obtain modules and the Town’s budget cycle would not allow enough time to have modules installed in the fall. Dr. Townsley stated that the cost to lease or rent modules is approximately $38,000, noting that there will probably be a need for modules in the future or they can be sold. He stated that modules are necessary to maintain the programs, in 2002/2003, which they now have at the high school.

Ms. Fitzpatrick questioned whether there is a cost benefit to purchasing 7 modules at one time. Dr. Townsley stated that there may possibly be an advantage in the bidding process if all 7 modules are installed at one time. Mr. Holden explained that due to items such as utility connections it is more cost effective to install the modules as one project.

Ms. Glassman questioned the amount of funds available with the 1% expenditure of Reserves allowed through the Charter. Mr. Kane stated that 1% equals $560,000. He noted that the full request for $500,000 would need to be appropriated even though a reimbursement would be received and applied as revenue. Mr. Holden stated that the Town could specify within their bid request that there be 2 payments, one prior to July 1st and one after July 1st.

Mr. Askham questioned whether the Town still plans to fund revaluation through the 1% rule. Mr. Kane stated that last year the BOF funded $150,000 for revaluation and they had planned to fund another $150,000 this year. He noted that with an appropriation of an additional $100,000 next year they will have appropriated the $400,000 necessary for revaluation. Mr. Askham questioned the status of the Meadowood legal fees. Mr. Kane stated that last year the Town spent $300,000 and this year $42,000 has been paid to date. He stated that he assumes a cost in the area of $120,000 for Meadowood this year. Dr. Townsley noted that the BOE could have a potential deficit due to the cost of fuel oil. Mr. Askham expressed his hesitancy to commit the entire 1% of Reserves to this project since Reserves are to be used for unanticipated budget items.

Chairman Henault requested that the BOE consider 2 phases, during this fiscal year and next fiscal year, for purchasing the modules.. He requested a letter from Dr. Townsley addressing this request. Mr. Kane stated that he will need to check with the Auditors regarding the possible payment of the modules over two years with a commitment made in one year. Ms. Glassman noted that 4 modules could be ordered now and 3 ordered later.

Chairman Henault noted receipt of Ms. Mielert’s November 14th memo regarding the EDC’s transfer request (Addendum 2). Mr. Kane stated that last year the EDC entered into a contract with MBIA and the EDC staff person never encumbered the funds into this year’s budget. He stated that the EDC committed to the $9,000 expenditure with the consultant and thought that a purchase order had been placed in the system by staff, which was not done.

Ms. Fitzpatrick questioned whether this financial commitment could be handled when internal transfers are possible. Mr. Kane stated that he does not know what funds the EDC has already committed. Ms. Fitzpatrick requested information regarding the EDC’s budget, the EDC’s financial commitments, and whether they can cover this expenditure now. Chairman Henault pointed out that the BOS considers internal transfers when they know there is a potential surplus in the budget.

Ms. Fitzpatrick moved that the BOF requests that the EDC use their current budget to cover the cost for the consultant, and provide an explanation to the BOF if that is not possible. The BOF prefers not take funds from Reserves and suggests an internal transfer be made after February 1, 2001 to cover the cost. The motion was seconded by Ms. Glassman and carried unanimously.

Chief Ingvertsen reviewed his request for funding of the COPS in School and the COPS MORE 2000 grants (Addendum 3). He stated that the BOS and the Police Commission have approved receipt of these two federal grants. Chief Ingvertsen reviewed the COPS in School grant program. He stated that the amount of the grant is $90,000 and would have an annual cost of $54,000 in the first year and $59,000 in the second year. Mr. Kane stated that this is a declining grant and over a 3 year period the Police Department would expend $180,000 and expect revenue of $125,000 from the grant. He pointed out that the Town must guarantee that they will pay the fourth year entirely. Chief Ingvertsen stated that he will include this expenditure within the Police Department budget.

Ms. Fitzpatrick noted that $19,000 is needed before the end of the fiscal year. Chief Ingvertsen stated that the expenditure would happen in March. Mr. Kane stated that an appropriation is necessary before a police officer is hired. Mr. Askham questioned whether the $19,000 reimbursement can be recognized as Reserves. Mr. Kane stated that he will check with the Auditors.

Chief Ingvertsen addressed the COPS MORE program. He explained the difficulties and expense of having a sworn officer work as dispatcher. He stated that this is a one year grant and the Town would have to pay the second year. Chief Ingvertsen noted that the Town will save $27,000 in the first year with this program. He stated that the Police Department has been decreasing their overtime expenditure and is trying to stay within their under-funded overtime budget.

Chairman Henault questioned whether the BOS discussed the future pressure these hires would have on their operating budget. Chief Ingvertsen responded that the BOS noted the effect on the Police Department budget and questioned whether these positions could be absorbed into the budget. He stated that he feels he can absorb the cost of these positions into the Police Department budget. Mr. Kane distributed a breakdown of the transfer from Reserves (Addendum 4).

Ms. Glassman moved to accept the transfer from the state grants section of the Charter in the amount of $24,400 for the COPS MORE dispatcher position and $19,000 for the COPS in School police officer position in accordance with Addendum 4. The motion was seconded by Ms. Fitzpatrick.

Chairman Henault noted receipt of Mr. Toner’s November 15th memo (Addendum 5). Mr. Kane stated that in order to bond the project, approval of the expenditure is required. In response to Ms. Glassman, Mr. Vincent stated that these projects were presented to the Culture, Parks and Recreation Commission.

Mr. Belfiore questioned the built-in cost increases for the BOE budget. Mr. Holden briefly reviewed the expected BOE budget increases which will amount to an increase of 7%-9%. In response to Mr. Askham, Mr. Holden stated that the anticipated enrollment increase for next year is approximately 200. He stated that this year the enrollment was 47 less than projected.

Chairman Henault requested that statistics be gathered to assist in setting the budget guidelines. Ms. Glassman stated that she will work on obtaining statistics if Mr. Kane can provide a sense of the grand list. Mr. Kane stated that the grand list growth figures become available in mid-January. He noted that the anticipated grand list growth is 1%-2%. He stated that he can provide Town budget figures based on built-in increases.

Chairman Henault pointed out that the only capital project to be addressed in the next fiscal year is the high school. Mr. Askham noted the BOS and BOE will need to consider the effect on their operating budget if the capital plan goes above 5%.

Mr. Kane reviewed his report, explaining why 29.4% has been expended this year versus 24% last year. He discussed the areas of concern and noted that the amount of fees collected by the Town Clerk is down. He stated that the Town will be receiving grants from last year.

Chairman Henault noted receipt of Mr. Kane’s November 8th memo regarding the impact of the proposed six year capital improvement plans on the debt service budget. He suggested that board members review this document regarding debt load. Chairman Henault noted receipt of the correspondence between Ms. Fitzpatrick and Ms. Mielert regarding the Fund for Land Acquisition and Preservation. Ms. Fitzpatrick stated that she will attend the next Open Space Subcommittee meeting. Chairman Henault pointed out that if the BOF does not take action when they review an ordinance the First Selectman will interpret their inaction as approval by the BOF.