These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
JANUARY 16, 2002
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 6:00 P.M. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Kevin North and Michael Wade. Also present were First Selectman Thomas Vincent, Finance Director Kevin Kane, Recreation Director Gerard Toner, Board of Education Business Manager David Holden and other interested parties.
2. APPROVE MINUTES
December 17, 2001 Special Meeting
Ms. Fitzpatrick moved to approve the minutes of the December 17, 2001 Special Meeting as amended. The motion was seconded by Mr. Wade and carried unanimously.
December 18, 2001 Regular Meeting
Mr. Askham moved to approve the minutes of the December 18, 2001 Regular Meeting. The motion was seconded by Mr. North and carried unanimously.
3. MONTHLY FINANCIAL UPDATES
Board of Education
Mr. Holden reviewed the BOE “Financial Report/Quarterly Budget Analysis” dated January 15, 2002 (Addendum I). He noted that the change since last month’s report was roughly a $6,000 increase in the projected surplus.
Board of Selectmen
Mr. Kane referred to his January 11, 2002 memo “Financial Performance Report – Six Months Ended December 31, 2001” (Addendum II). He noted two major areas of concern: the Meadowood legal fees which have not been budgeted for and the potentially over-expended budgeted legal expenditures. Mr. North questioned the possibility of having a staff attorney to handle routine matters, as a number of towns have, as a cost saving measure.
In response to Mr. Askham’s question, Mr. Kane stated that if things continue the way they are, the Town could end up with a deficit on the expenditure side. Mr. Askham also queried as to the status of the self-insurance fund. Mr. Kane replied that he is still waiting for information from Bob Lindberg. Mr. Holden interjected that Bob Lindberg and members of the insurance committee are making a presentation to the Board of Education’s Budget and Finance Committee tomorrow night and that the issue of the claims experience through December will be presented then. That meeting will produce current information.
Simsbury Farms Special Revenue Fund
Mr. Toner reviewed the “Simsbury Farms Special Revenue Fund Summary Report” (Addendum III) through December, 2001. He stated that the biggest issue they’re facing now on the revenue side is that golf revenues are down 5 – 8%. But he noted that it is not just a Simsbury Farms issue; it’s a golf industry issue right now. One way they have addressed this, in the short term, is to agressively pursue outside play. On the expense side, he said they are looking to reduce services where it can be done with the least impact on the public. He stated that he felt the expense side was more manageable than the revenue side.
Ms. Fitzpatrick wondered if anyone has considered moving the Simsbury Farms budget back into the Board of Selectmen budget and whether that would be a positive or negative move. Discussion followed. Mr. Toner noted that the fund is broken into three components: Programs, Simsbury Farms Facility and Golf Course. The fund has been very successful from the programs standpoint. The Simsbury Farms facility is old and has fixed costs. The golf course makes money, but the timing of taking on the new clubhouse debt is going to press the golf course bottom line. In short, he felt that there are merits to keeping some of the components in a Special Revenue Fund.
Ms. Fitzpatrick moved to amend the agenda to address item #7 next. The motion was seconded by Mr. Wade and carried unanimously.
4. EXECUTIVE SESSION
Discussion on the purchase of development rights
Pursuant to Connecticut General Statutes Section 1-200(6)(D) to discuss selection and purchase of a site by a political subdivision
The Board entered Executive Session, which included Mr. Vincent and Mr. Kane, at 6:30 P.M.
5. AUTHORIZE THE PURCHASE OF DEVELOPMENT RIGHTS
The Board of Finance Meeting reconvened at 7:12 P.M.
Ms. Fitzpatrick moved to amend the agenda to address item #8 next. The motion was seconded by Mr. Askham and carried unanimously.
Ms. Fitzpatrick moved to approve the purchase of development rights of Hall Farm as outlined in the Purchase and Sale Agreement utilizing the Land Aquisition and Preservation Fund from May, 2000. The motion was seconded by Mr. Wade.
During discussion Ms. Fitzpatrick stated that the purchase price is $370,000 and that the Town has received a 50% grant from the State resulting in a cost to the Town of $185,000 for 11.1 acres. Mr. Henault added that the purchase is coming from funds authorized by the Town previously at a Town meeting which also directed how the land could be used.
Mr. Henault asked for a vote, and the motion carried unanimously.
6. BUDGET TRANSFERS
Ms. Fitzpatrick moved to approve the General Fund Budget Transfers as outlined in Kevin Kane’s January 2, 2002 memo (Addendum IV). The motion was seconded by Mr. North and carried unanimously.
Ms. Fitzpatrick moved to approve the Simsbury Farms Budget Transfers as outlined in Kevin Kane’s January 2, 2002 memo (Addendum IV). The motion was seconded by Mr. Askham and carried unanimously.
7. FISCAL YEAR 2002/03 INVESTMENT INCOME PROJECTION
Mr. Kane referred to his Budget Worksheet: “Budgeted Investment Income for Fiscal Year 2002/03” (Addendum V). Mr. Henault asked if Mr. Kane would be able to give the BOF this worksheet on a monthly basis. Mr. Kane answered that he could. Mr. Askham suggested that it is important to not aniticipate an increase in interest rates that might not happen. Mr. North stated that, recognizing all the challenges the Town will be facing next year, it would be better to be conservative in budgeting investment income. Mr. Kane countered that he always is. He stated that he will come up with a blended rate.
8. FISCAL YEAR 2002/03 MILL RATE PROJECTION
Mr. Kane stated that he talked with the Assessor recently, and nothing much has changed. He’s still looking at 1 – 1.5%.
9. AUDIT REPORT COMMENTS
Mr. Askham asked if Mr. Kane had checked if one footnote on pension was O.K. Mr. Kane said he will check into it.
10. ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 7:30 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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