These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
DECEMBER 18, 2001
REGULAR MEETING
1. CALL TO ORDER
The Regular Meeting of the Board of Finance was called to order at 6:05 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, Kevin North and Michael Wade. Also present were First Selectman Thomas Vincent, Finance Director Kevin Kane, Superintendent of Schools Joseph Townsley, Board of Education Business Manager David Holden and other interested parties.
APPROVE MINUTES
November 20, 2001 Regular Meeting
Mr. Henault questioned whether the Board wanted a quarterly or monthly report from Gerry Toner on the Simsbury Farms Special Revenue Fund. (See page 1, item 3 of the 11/20/01 BOF Minutes.) It was agreed that a monthly reporting was necessary.
Mr. Wade moved to require a monthly written report, rather than a quarterly report, from Recreation Director Gerry Toner to the Board of Finance on the status of the Simsbury Farms Special Revenue Fund. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
Mr. North suggested that the format of the above report be modified dramatically from what was presented last time. He felt that a prose report was not appropriate and that it should be in spreadsheet format including comparisons to last year. Mr. Henault suggested that Mr. North and Mr. Kane work with Mr. Toner to come up with a better format.
Mr. Askham moved to approve the minutes of the November 20, 2001 Regular Meeting as amended. The motion was seconded by Mr. Wade and carried unanimously.
AUDIT REPORT
Mr. Henault deferred this item to Mr. Kane in the absence of someone from the audit firm due to illness. Mr. Kane handed out his memo dated December 14, 2001, “Financial Performance Report – Five Months Ended November 30, 2001” (Addendum I). He also handed out three booklets from the auditors, Blum Shapiro: Simsbury State Single Audit Report June 30, 2001; Simsbury Federal Single Audit Report June 30, 2001; and Simsbury Comprehensive Annual Financial Report June 30, 2001. Mr. Kane stated that the auditors do not have any concerns with the Town or the Board of Education. He suggested that the auditors come back and have discussions with perhaps himself, one or two BOF members and David Holden to discuss GASB 34. Mr. Kane began an overview of the Audit
Reports.
Mr. Askham expressed concern about the figures for pension funding. He and Mr. Kane discussed the area in detail. Mr. Henault suggested the possibility of inviting the Pension Sub-Committee to a January or February BOF meeting. Mr. Belfiore, as a member of the Pension Sub-Committee, recommended inviting the Town’s actuary, Althea, instead to get better information. He stated that the chairman of the Pension Sub-Committee, Donna Parker, is also an actuary, and it may be a good idea to invite her as well as Althea to a BOF meeting.
Mr. North stated that this would be a good time to concentrate on closing out accounts that have been idle and are not likely to be expended. Mr. Kane added that a lot of these projects are winding down. He feels that a lot of projects will be closed the end of this fiscal year.
Mr. Askham moved to accept the 2000/01 Audit Report. The motion was seconded by Mr. North and carried unanimously.
2002/03 BUDGET GUIDELINES
Mr. Henault opened the discussion by thanking all the Board members for their comments at the previous night’s workshop meeting. Mr. Henault invited Dr. Townsley to comment since he had not been at the workshop meeting. Dr. Townsley stated that next year’s freshman class will be the largest ever. There should be around 120 new students next year, with the most growth being in the high school. They will be adding three more modules next year at the high school. Dr. Townsley spoke of the fact that around 11 teachers will be retiring which is good for the budget since the average pay for a new teacher is less than that of a retiring teacher. Mr. Henault asked Mr. Holden what the projection is for medical costs. Mr. Holden responded that the most recent information is
23-25%.
Mr. Henault passed out a hand-out from the previous night’s meeting: “Projected Mill Rate” (Addendum II) and reviewed it. Mr. Askham brought up the possibility of separating the guideline, and if it remains as only one, he would like to see it under 4%. Ms. Fitzpatrick commented on the separation of the guideline and felt that the BOE’s percentage would be higher than the BOS’s which would be penalizing the BOS. Mr. Henault spoke of the issue of a guideline vrs. a cap and gave compelling reasons for each.
Mr. North stated that during his run for the BOF, he received very strong messages about the load of taxation the people feel they are burdened with. He felt that at a bare minimum there should be no tax increase which is in excess of the prior year’s increase. He noted that the Town’s tax increases averaged 1% per year over the past 11 years but 4% over the past 6 years. And in the last 2 years we’ve been roughly 50% higher than that 6-year average. He stated that he doesn’t believe that is a sustainable rate of increase. He added that although there are some in Simsbury who can afford any mill rate increase, there is a significant portion that is stressed every time there is a mill rate increase of any amount. He agreed with the general consensus that the Town
needs to grow its commercial tax base. And since business is rational, they are not going to go to the places where they are paying the highest tax rates. Mr. North also recommended, as a general budgeting guideline, the idea of zero-based budgeting. It shouldn’t be a foregone conclusion that what you did last year is something you have to do this year. He concluded by stating that he is more in favor of a cap because it imposes a tighter discipline.
Ms. Fitzpatrick felt the Board should consider a slightly lower guideline than last year’s 4%. She also echoed the worries of the prospects for the high school project in that it would mean a 3-3.5 mill rate increase on its own. Mr. Henault referred to and passed out copies of Kevin Kane’s 12/18 memo “Projected Mill Rate / Tax Impact for Proposed High School Expansion and Renovation Project” (Addendum III). Mr. Kane answered questions directed to him.
Dr. Townsley stated that a guideline is important for the BOE in that it gives them direction. He touched on several areas which will require increased funding. He focused on the importance of the special ed program, the savings over out-placement, and the cost of hearings.
Mr. Vincent requested the BOF give him a guideline ASAP. He stated that in the two weeks he’s been in office, he’s met with over 25 potential business people who could bring business to Simsbury. He noted that there is a job opening in the Building Department and that he cannot fill the position until he knows he has funds to do so. He added that this is one service area that is very important to the satisfaction of businesses in town. Another daunting problem is the tax rate. Having a guideline soon will aid in negotiations Mr. Vincent is currently involved in.
Mr. Henault queried the Board as to whether they want to take action this evening, wait until the next meeting or have a Special meeting next week.
Mr. Askham moved to set a single spending guideline of 3.5%. The motion was seconded by Ms. Fitzpatrick and carried unanimously.
Mr. Vincent noted that he had accepted the resignation of Mr. Belfiore from the BOF and asked for a round of applause.
5. OTHER BUSINESS
Mr. Henault asked to move the 1/15/02 BOF meeting to 1/16/02.
Ms. Fitzpatrick moved to change the Regular Board of Finance meeting on January 15, 2002 to a Special meeting on Wednesday, January 16, 2002 at 6:00 P.M. The motion was seconded by Mr. Askham and carried unanimously.
Mr. North asked if there is a deputy chairman to act in the absence of the chairman so that the meetings would adhere more to the calendar of meeting dates. Mr. Henault answered that he would defer to the senior member, that there is not a deputy chairman. He asked whether the Board wanted to change that policy. Ms. Fitzpatrick suggested that the issue be discussed after the budget season.
Mr. Henault officially welcomed Mr. North to his first meeting of the BOF. He also expressed deep regret at losing one of the finest members that the BOF has ever had in the Town of Simsbury. Mr. Belfiore has dedicated 12 years to the Town and will certainly be missed. Mr. Belfiore replied that it has been a great pleasure and that he appreciates having had the opportunity to serve with all of the Board members.
6. ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 8:01 P.M. The motion was seconded by Mr. Askham and carried unanimously.
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Paul W. Henault, Chairman
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Roxanne Farrell, Clerk
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