These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
SEPTEMBER 12, 2001
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 5:34 P.M. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Chairman Paul Henault, Peter Askham, James Belfiore, Candace Fitzpatrick and Mary Glassman. Also present were First Selectman Anita Mielert, Finance Director Kevin Kane, Board of Education Business Manager David Holden, Superintendent of Schools Joseph Townsley, Board of Education Chairman Mary Margaret Girgenti and other interested parties. Ms. Glassman left the meeting at 5:57 P.M.
Before beginning the meeting, Mr. Henault took a minute to reflect on the previous day’s attack on the United States. He expressed his compassion for the victims and lauded the heroism of the people who went to assist. He asked God to provide our leaders with the wisdom and strength to identify and deal with the enemies who perpetrated the act. A moment of silence followed.
2. SELF INSURANCE FUND UPDATE
Mr. Henault referred to the memo requesting a transfer from RESERVES to the Self Insurance Fund (Addendum I). He noted that the Board of Finance is considering restricting the use of RESERVES for the current fiscal year from 908C unless it qualifies as an emergency because of their concern over the Self Insurance Fund and the state of the surplus.
Mr. Henault introduced Robert Lindberg of Lindberg & Ripple, Inc., our health insurance advisor. Mr. Lindberg distributed a Discussion Outline and an ASO Claim History over the last three years (Addendum II).
Mr. Henault asked if the premium holidays in1998/99 and 1999/00 could have been a major cause of the current problem with the Self Insurance Fund. Mr. Lindberg felt that the premium holidays combined with the shortfall in claim activities created pressure on the fund. He also noted that last year’s projections were made based on an incorrect head count of participants obtained from CIGNA, an overage of 32. In response to questioning, Mr. Kane made it clear that Mr. Lindberg was not the one who recommended the premium holidays.
During discussion of Reserve Funding (item III of Addendum II), Mr. Lindberg suggested that $750,000 - $800,000 would be the minimum Contractual target for the stop loss corridor. Mr. Askham wondered if the Town should be getting rid of this plan. Mr. Henault asked Mr. Lindberg if, after the proposed transfer, they should be comfortable with the $295,000 balance and hope that the losses aren’t going to equal what they have the past couple years. Or should they put a hold on the use of RESERVES, except for emergencies. Mr. Lindberg answered that $300,000, give or take a little bit, covers the range of variations experienced over the last three years. But he said that he would have a better handle on making a recommendation after seeing the September claim activity. Mr. Askham asked
what would happen if the transfer is not made. Mr. Kane gave several possible scenarios and recommended making the transfer to play it safe.
Mr. Henault suggested allowing Mr. Lindberg to look at September claims and see how they develop, that the Board of Finance not entertain any requests to move any money out of RESERVES out of 908C for the next month or two, and keep a very close look at this thing.
3. BUDGET TRANSFER REQUEST FROM RESERVES – FISCAL YEAR 2000/01
Mr. Henault asked Mr. Kane if the Board of Selectmen approved the transfer. Mr. Kane answered in the affirmative.
Ms. Fitzpatrick moved to approve a transfer from Fiscal Year 2000/01 RESERVES pursuant to Section 908C in the amount of $143,567 to the Town’s Self Insurance Fund. The motion was seconded by Mr. Askham and carried unanimously.
EDUCATIONAL UPDATE
HIGH SCHOOL MODERNIZATION PROJECT UPDATE
Ms. Girgenti stated that the Oversight Committee met that morning to review where they are in terms of their enrollment projections and the status of the contract for the high school. It is their intention to have a 6-year capital plan available at their next Board meeting. They hope to adopt it at their first meeting in October: to assume approximately $40,000,000, a 5 to 6 year plan to cover all of the capital spending needs of the Board of Education. The goal is to have it ready for a May referendum. Ms. Fitzpatrick reconfirmed that the $40,000,000 would cover all capital spending, not just expansion. Mr. Askham asked how quickly we could bond since interest rates are pretty low now. Mr. Kane stated that $40,000,000 would probably have to be bonded over two or three issues. He
felt that we will more than likely bond in the fall – November or December – and the amount that can be bonded then will be dictated by the cash flow analysis that the Board of Education prepares. The money has to be spent within a year. Ms. Mielert expressed the understanding that the Board of Education should match the $40,000,000 with as much State money as possible, so they could be dealing with as much as $57,000,000 or $58,000,000. She added that the part that we would actually authorize with the voters would be the larger amount.
Dr. Townsley referred to the proposed May referendum and noted that after a substantial number of months, there has not been a contract yet between the architect, Fletcher-Thompson, and the Public Building Committee. He expressed concern that if it is not resolved soon, it may be very difficult to get through 30% of the design phase completed in time for May. Mr. Holden stated that the architect’s fees are several percentage points higher that the Building Committee and Town officials feel is acceptable. Mr. Henault asked who owns all of the drawings that have already been done and the software that has created those drawings. Mr. Holden answered that the Town owns the drawings that they’ve received but not the diskette that could be passed on to another architect. Mr. Henault made
a strong suggestion that the Town try to retain that from Fletcher-Thompson as soon as possible. Mr. Henault asked Dr. Townsley if they could go to a Town Meeting with less than 30% design phase done. Dr. Townsley answered that the Public Building Committee feels that that is the proper approach, so it’s a decision that all would have to make cooperatively.
MONTHLY OPERATING BUDGET UPDATE
Mr. Holden reported that the largest part of their budget is staffing and benefits, and they are on target at this point. Fuel oil is locked in at $.895 per gallon; it was budgeted for $1.06. The overview continued, and discussion ensued.
5. APPROVE MINUTES
Mr. Henault asked for a motion to move the minutes to the next Board of Finance meeting.
Mr. Askham moved to delay approval of the minutes from the July 24, 2001 Special Meeting and the August 21, 2001 Regular Meeting until the next Board of Finance meeting. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
6. ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 6:57 P.M. The motion was seconded by Mr. Askham and carried unanimously.
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Paul W. Henault, Chairman Roxanne Farrell, Clerk
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