Simsbury, CT - Board of Finance

The Regular 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, Nicholas Mason and Kevin North. Also present were Tax Collector Kathleen Hayes, Assistant to the First Selectman Brandon Robertson, Board of Education Business Manager David Holden and other interested parties.

Ms. Hayes presented her suspense list, and Ms. Fitzpatrick asked how this year's numbers compare with past years'. Ms. Hayes answered that this year's are higher than last year's. She noted that last year she had a sheriff working on collecting all the out-of-state ones. Mr. Mason queried as to the status of prior years' accounts. Ms. Hayes said that they are in suspense, and if a person moves back into the state, the money owed is still collectable. The Motor Vehicle Department holds up registration for these people until the taxes are paid. Mr. Mason asked if the economic cycle is affecting the collection rate. Ms. Hayes noted that more people have been making partial payments this year than ever before.

Mr. Henault reviewed the General Fund Budget Transfers as outlined in Finance Director Kevin Kane's June 5, 2002 memo "Fiscal Year 2001/02 General Fund Budget Transfer" (Addendum I). Concern was expressed over the Meadowood legal fees. It was noted that the proposed transfers reflected legal billing through April.

Mr. North moved to adopt the recommendations of the Town Treasurer and implement Operating Budget transfers in the amount of $127,008.17 as enumerated in his June 5, 2002 report. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

Mr. Henault referred to Kevin Kane's June 5, 2002 memo ""Fiscal Year 2001/02 Special Revenue Fund Budget Transfers" (Addendum II). Mr. North questioned that in the Sewer Use Fund transfer, money would be transferred to a number of maintenance activities from what appears to be a capital activity. Mr. Henault suggested leaving this item open until the July meeting.

Mr. North moved to approve the transfers of $11,326.00 associated with the Simsbury Farms Fund and defer consideration of the recommended amounts for the Sewer Use Fund until the next scheduled meeting. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

Mr. Henault referred to Kevin Kane's worksheet, "Budgeted Investment Income for Fiscal Year 2002/03", through May 31, 2002. Mr. Mason noted that with the May 31st projected investment income of $533,807.08, it will be difficult to make the $590,000 prior projection for June. Mr. Henault asked if anyone had heard of anything with respect to interest rates. It was determined that interest rates were expected to continue soft for a period of time.

Mr. Henault reviewed Kevin Kane's June 14, 2002 memo "Financial Performance Report - Eleven Months Ended May 31, 2002". He noted a possible surplus on the expenditure side of $65,000. The Revenue Report showed a continued uncertainty as to when the Town would receive revenue grant reimbursements for the Stoddard Reservoir property and the Hall Farm Development Rights. Mr. Henault asked Mr. Robertson if he had an update on that.

Mr. Robertson stated that they had had a couple of paperwork glitches. He noted that they would be getting another attorney involved other than the Town attorney. He explained the technicalities holding up the process and stated that he did not expect to have the funds by the end of the fiscal year. Possibly by the beginning to middle of September. Mr. Henault asked how much in additional legal fees would be incurred with the new attorney. Mr. Robertson answered that it would not be much - only a couple hours of work would be necessary.

Mr. Henault reviewed Kevin Kane's "Simsbury Farms Special Revenue Fund Summary Report". Discussion ensued, and concern was expressed over the projected deficit. Mr. North stated that he couldn't be very enthusiastic about considering support of capital projects for this department in the future if they can't perform with more credibility. Mr. Henault supported that thought.

Mr. Holden handed out and reviewed his memo "Simsbury Public Schools 2001-02 May 31, 2002 Budget Analysis Projected Through June 30, 2002". He noted that the projected surplus of $102,954 for public schools is conservative. There is also a projected surplus of $13,500 for non-public schools.

Mr. Henault informed the BOF members that he had sent Mr. Holden a memo requesting a change in the format of the monthly financial reports in order to get more information on the major eleven or twelve accounts: the budget as approved at the referendum, the revised budget, the year-to-date plan running each month, and the actual. Also to be included would be the count of personnel by major categories: teachers, administrators, clerical, and maintenance. Mr. Holden said he passed the memo on to the BOE.

Mr. Holden stated that through eleven months, claims have been processed totaling $3.55 million. The last three months' claims have averaged considerably more than the previous eight. He explained the individual stop loss insurance whereby our obligation ends once $150,000 is met, but payment still comes out of the fund, followed by reimbursement. He did not have information at this point as to the value of those claims in this projection. When he has an updated report from Bob Lindberg, he will forward it to the BOF.

Mr. Askham stated that he had a meeting with Kevin Kane and with one of his partners who specializes in this. He said they went through all the item that the Town had to handle and discussed the letter received from the auditors. A time table was set for when which actions should happen. He added that they are going to have a pre-audit meeting and include the timetable in their discussions. Mr. North noted that the Town of Simsbury has a very good inventory already compared to other towns. He also lauded Mr. Askham and his partner for the time made available to Simsbury. Mr. Henault added his expression of appreciation.

Mr. Henault stated that Fleet is the Town's current Financial Advisor and that they have done a good job in the past. He noted that the Town has not done anything for the past few years with respect to an RFP.

Mr. North stated that the Town is dealing with the largest capital project it has ever undertaken, and given the fact that the Town hasn't revisited service providers in a number of years, he felt that they should put out an RFP.

Mr. Henault stated that prior to the high school modernization being approved, there was an Oversight Committee consisting of members from the BOF, BOE and BOS and a representative from the Public Building Committee. He referred to his June 10, 2002 letter to First Selectman Tom Vincent concerning the Oversight Committee (Addendum III). He noted that the current BOF members of the Oversight Committee are Mr. Askham and Mr. Wade. Mr. Askham stated that he would like to continue on in that position. Mr. Henault said that he would call Mr. Wade to see if he would like to also.

Mr. Henault noted that the liaison would not be a member of the committee but would gather information and provide feedback. Mr. North volunteered to be the liaison but asked for an alternate in case he is out of town on business. Mr. Mason offered to be the alternate, and Ms. Fitzpatrick offered to be another alternate.

Mr. Henault informed the members that he was on his way to a meeting of the BOE Budget and Finance Sub-Committee as a representative of the BOF and offered an invitation to any other BOF member who would like to attend.