Simsbury, CT - Board of Finance

These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.

BOARD OF FINANCE

The Regular Meeting of the Board of Finance was called to order at 6:03 P.M. in the Main Meeting Room of the Simsbury Town Offices. The following members were present: Chairman Paul Henault, Candace Fitzpatrick, Nicholas Mason, Kevin North and Michael Wade. Also present were State Representative and Immediate Past President of Simsbury Little League Robert Heagney, Board of Education member Richard Hogan, Engineer of WPCF William Hogan of the State of Connecticut Department of Environmental Protection, Board of Education Business Manager David Holden, Finance Director/Treasurer Kevin Kane, Director of Public Works Michael Wrabel and other interested parties.

June 18, 2002 Regular Meeting

Mr. North moved to approve the minutes from the June 18, 2002 Regular Meeting. The motion was seconded by Ms. Fitzpatrick and carried unanimously with Mr. Wade abstaining.

3. OPERATING BUDGET TRANSFERS FOR FISCAL YEAR 2001/02

Board member Peter Askham arrived at 6:05 P.M.

Mr. Kane reviewed his July 16, 2002 memo, "Preliminary Fiscal Year 2001/02 Financial Results". In it, he projected "that the Town will end fiscal year 2001/02 with an undesignated fund balance in an amount of no less than $4,345,711". He also projected that the Simsbury Farms Special Revenue Fund "will end fiscal year 2001/02 with an undesignated fund balance in an amount of $0". Ms. Fitzpatrick asked if any Reserves had been used in 2001/02. Mr. Kane stated that $20,900 was used for a transfer to the Police Dept. for body armor. It was a matching grant, and the revenues for that will come in next year.

Mr. Kane reviewed his July 16, 2002 memo, "Increase (Amend) the Landfill Fund, Revenue and Appropriation Budget; Fiscal Year 2001/02 Budget Transfer" (Addendum I).

Ms. Fitzpatrick moved to approve the Revenue Budget requested increase and Appropriation Budget requested increase as outlined by Kevin Kane in his July 16th memo and to approve the budget transfer as outlined in the same memo. The motion was seconded by Mr. North and carried unanimously.

Mr. Kane reviewed his July 12, 2002 memo, "General Fund 2001/02 Budget Transfers" (Addendum II). He noted that this $47,175.00 transfer is a "housekeeping" entry.

Mr. Kane highlighted items in his July 12, 2002 memo, "General Fund 2001/02 Budget Transfers" (Addendum III) with the transfer totaling $233,487.00. Mr. Askham stated that he had a conflict with one of the transfers in this memo because his firm has been engaged to do some work for the Simsbury Little League. He would have to excuse himself from any discussions on this item. Mr. Wade asked if the BOS had approved this list. Mr. Kane answered that they had not, since their last meeting had been canceled, and that the transfers would be contingent on their approval. Discussion ensued.

Mr. Kane reviewed his July 12, 2002 memo, "Special Revenue Funds 2001/02 Budget Transfers" (Addendum IV) for the Sewer Use Fund, Dog Fund and Simsbury Farms Fund.

Mr. Askham moved to approve the budget transfers totaling $47,175.00 in Kevin Kane's memo dated July 12, 2002 (Addendum II). The motion was seconded by Ms. Fitzpatrick and carried unanimously.

Mr. Mason moved to approve the budget transfers totaling $132,945.00 in Kevin Kane's memo dated July 12, 2002 (Addendum IV). The motion was seconded by Mr. Askham and carried unanimously.

Mr. Askham moved to approve the budget transfers in the amounts of $14,487.00 for the Simsbury Farms Special Revenue Fund and $70,000.00 for the October 1, 2002, Revaluation as outlined in Kevin Kane's memo dated July 12, 2002 (Addendum III). The motion was seconded by Ms. Fitzpatrick and carried unanimously.

Mr. Mason moved to defer action on the transfers for $85,000.00 for air conditioning for Eno Memorial Hall, $24,000.00 for the police cruiser and $10,000.00 for the special copy machine for public use in the Town Clerk's office pending action from the Board of Selectmen. The motion was seconded by Mr. North.

During discussions, Mr. North commented that, as much as some or all of these items are nice to have, an opportunity is being missed to build Reserves. In terms of Town financials, these items are not essentials.

A vote was taken, and the motion passed unanimously.

Mr. Wade moved to amend the agenda to consider Agenda Item #7 next. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

SEWER TREATMENT PLANT UPDATE

Mr. Henault introduced Mr. Wrabel, Jim Clifton, Superintendent of the Water Pollution Control Facility, and Mr. Hogan from the DEP. Mr. Wrabel referred to the conflict between the Office of Policy and Management and the Town of Granby. He stated that until this is resolved, the DEP cannot issue a "FONSI", Finding of No Significant Impact. He also noted that in April the DEP issued the Town of Simsbury an order that gave a deadline of June 30, 2003, by which time there have to be plans and specifications ready to go to the DEP so that the sewer project can be included in the bond package for the State Bond Commission. He added that Earth Tech has had to start work and are generating bills and that the Town has to come up with a strategy to pay these bills. All these costs, plus interest, will be refundable.

Mr. Hogan commented that the real issue is not so much the issue with OPM and the State Conservation Development Policy Plan as it is the State Bond Commission. He was confident that the Granby issue could be resolved within the next three months. He stated that the DEP has a number of projects that are back-logged, and he added that DEP fully intends to fund this project. He handed out a project priority list and went over it. He reiterated that Simsbury needs to have the plans and specs submitted to the DEP by June 30, 2003.

Mr. Askham asked for clarification of the problem. Mr. North summarized that there is a timing problem. Engineering and design will take a full year and that reimbursement for those design fees may not be forthcoming until the Bond Commission meets again in September. Mr. Hogan added that he was trying to point out the risks of not moving ahead. If Simsbury does not file a complete application, including plans and specs, by June 30, 2003, the Town project could lose its status of being fundable in fiscal year 2004. And there are a lot of other high priority projects which are making progress. He tactfully noted that the DEP has monthly meetings with the EPA where they overview all of the actions of the municipalities as well as the industry in the state and that the DEP has fended off a number of questions about Simsbury and permit violations. He explained that Simsbury's current plant is producing permit violations simply because it's aged and it's not capable, with the existing flow, of meeting the permit on a consistent basis.

Ms. Fitzpatrick recommended communicating in writing to the other towns involved in this project about the "wrinkles", what they are and what Simsbury expects of them to protect its interest.

Mr. North expressed the opinion that either progress should be stopped on the project or the BOF should figure out how the Town is going to fund it. Mr. Kane stated that the Sewer Use Fund has $1.9 million in investments and that he had conferred with Ted See, Town Bond Counsel. It was suggested that, if they decide to go forward with this, they should make sure that when any money is spent on the Sewer Treatment Expansion Project, whenever you have a negative cash balance of $200,000.00, make sure you have a positive cash balance in the Sewer Use Fund for the same amount. Mr. Kane further noted that it would be cheaper to lose this investment income from the Sewer Use Fund than it would be to go out for a BAN (Bond Anticipation Note) issue.

Mr. Wade moved to authorize the Town Treasurer to expend funds on behalf of the project that's been approved by the voters at the referendum for the Water Treatment Plant which will come from the Capital Projects Fund with an offset from the Sewer Use Investment Fund to provide for design fees associated with this project up to $1,896,035.00. The motion was seconded by Mr. North and carried unanimously.

Ms. Fitzpatrick moved to amend the agenda to take up Agenda Item #4 next. The motion was seconded by Mr. Askham and carried unanimously.

BOARD OF EDUCATION REQUEST PERTAINING TO FISCAL YEAR 2001/02 OPERATING BUDGET

Mr. Askham left the room during this discussion citing conflict of interest.

Mr. Henault referred to the two letters in the packets, one dated June 27, 2002 from Mary Margaret Girgenti, Chairman, BOE and the other dated July 9, 2002 from Simsbury Little League, Inc. requesting assistance in the funding for the construction of a girls' interscholastic softball field located at Memorial Park. He introduced Rich Hogan, Rob Heagney and John Vaughn, President, Simsbury Little League.

Mr. Hogan discussed the $100,000.00+ surplus that is available from the operating budget of the BOE. Mr. North asked how use of the field would be split. Mr. Hogan answered that Simsbury High School students would use it after school for practices, and it will be shared on Saturday with the Little League. Mr. Heagney added that the system was designed to be complimentary and schedules would be worked out. Mr. Wade asked if the field were already built. Mr. Heagney answered that it was but that the dugouts weren't completed yet due to lack of money.

Mr. Heagney reviewed his letter of July 9th and expanded on the history of Little League in Simsbury. He noted that for the first time Simsbury Little League borrowed money - $80,540.00.

Mr. North recommended that the entire $70,000.00 requested contribution come from the BOE operating budget surplus with $0 coming from the BOS budget.

Mr. North moved that the BOF recommend to the BOE that prior to the closure of their 2001/02 fiscal budget that they make an additional appropriation (expenditure) of $70,000.00 to fund a portion of the Simsbury Little League softball field which is used by the Girls' Interscholastic Softball Teams. The motion was seconded by Mr. Mason.

Mr. Henault asked Mr. Hogan if he felt the BOE would take exception to this, and Mr. Hogan stated that he could not speak for the BOE except that they feel it is a very worthwhile expenditure. He noted that they have canceled all meetings for the summer and that they will need to schedule a meeting before the end of July, before the books close.

Mr. North amended his motion to acknowledge Mary Margaret Girgenti's letter of June 27, 2002. Mr. Mason amended his second.

Mr. Hogan requested that the BOF send a letter to Ms. Girgenti outlining the request and the motion. Mr. Henault said that he would.

A vote was taken, and the motion passed unanimously.

Mr. North moved to deny the $30,000.00 budget transfer request for "Contribution for new little league softball field at Memorial Park" as outlined in Kevin Kane's memo dated July 12, 2002 (Addendum III). The motion was seconded by Mr. Wade and carried unanimously.

BOARD OF EDUCATION REQUEST TO KEEP OPEN A FISCAL YEAR 2000/01 PURCHASE ORDER

Mr. Holden reviewed his July 8, 2002 memo requesting that a purchase order issued on June 27, 2001 be carried forward into the 2002/03 fiscal year as an encumbrance of $19,392.21. This would be needed to complete the modular classroom project at Simsbury High School , and Mr. Holden anticipates that this encumbrance will be liquidated by September 1, 2002.

Mr. Wade moved to approve the Board of Education request to carry forward purchase order #00063048 into fiscal year 2002/03. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

AUTHORIZE THE ESTABLISHMENT OF THE "ENO MEMORIAL HALL" SPECIAL REVENUE FUND

Mr. Henault referred to Mr. Kane's July 10, 2002 memo, "Authorize the Establishment of the 'Eno Memorial Hall' Special Revenue Fund for Fiscal Year 2001/02" (Addendum V). Mr. North expressed concern that the principal should be protected. He recommended that an investment policy be established which maintains the purchasing power of the fund and does not allow the expense of all investment income. Mr. Kane wondered if they might want to turn this over to the Pension Committee because of their investment expertise.

Mr. North moved to establish the Eno Memorial Hall Special Revenue Fund based upon Kevin Kane's July 10, 2002 memo. The motion was seconded by Ms. Fitzpatrick.

Ms. Fitzpatrick reiterated the concern to protect the principal.

A vote was taken and passed unanimously.

Mr. Wade had to leave the meeting at 8:10 P.M.

REQUEST FOR PROPOSALS (RFP) FOR FINANCIAL ADVISORY SERVICES

Mr. Henault asked if the legal notice had been put in the papers. Mr. Kane said it had been put in on Sunday (July 14, 2002). Mr. Mason noted that there were a couple of date errors in the RFP. Item VI should not read March 26, 1999, and item VIII should not read June 30, 2001. Mr. Kane agreed and thanked Mr. Mason for telling him. Mr. Kane will correct the errors.

Mr. Henault referred to the memo from CCM, "2002-2003 State Budget: Impact on Simsbury". He noted that the overall reduction to Simsbury would be around $90,000.00.

Mr. Henault referred to the July 8, 2002 memo to Kevin Kane from Richard Sawitzke, Town Engineer, "Water Main Extension Capital Projects" regarding issues brought up previously by Mr. North. Mr. North stated that there were still some questions that needed to be answered. Mr. Henault suggested adding this item to the August agenda, and Mr. North agreed. Mr. North wondered whether it would be appropriate to have a meeting between the water company, a member of the BOF and the Engineering Dept. prior to the August BOF meeting. Mr. Kane questioned whether any of the projects from a few years back had been completed. He stated that none had been assessed. Other questions were raised as to the life of the projects and whether some were old enough to be closed and returned to the General Fund.

Mr. Henault referred to the Oversight Committee for the high school project and the Sewer Treatment Plant project. He noted that he has had discussions with Dick Ostop and Tom Vincent. He also stated that he is having a meeting Thursday morning with Mary Margaret Girgenti, Tom Vincent, Dick Ostop, Kevin Kane and probably Richard Sawitzke to talk about the need for an oversight committee and what one would do. There is a possibility an oversight committee is not needed. Mr. Henault will keep the BOF advised.

Mr. Henault stated that Mr. North is the BOF liaison to the Public Building Committee and that they had a meeting Monday night. Mr. North stated that his predominant concern from the previous night's meeting was that he listened to approximately $1 million of scope changes that were being discussed that were not offset by savings against the original construction estimate. He felt that those discussing the changes were losing sight of the overall objective of the BOF's goal that Town share of the high school project should not exceed $34 million. He strongly suggested that the BOF continue to hammer that message home. He also noted that members of the Public Building Committee seemed frustrated by the BOE's change suggestions. He requested that it be included in the record that he does not think this is being well run. He noted a further concern that it looks like the cost that the BOF set out to limit them to may be violated unless a very strong message is delivered by the BOF to the Public Building Committee and by the Public Building Committee to the BOE. Ms. Fitzpatrick stated that she felt it would be appropriate for Mr. Henault as Chairman of the BOF to send a letter reminding them of the fiscal constraints and reminding them that the educational needs were already established and that that's what was brought to the voters. Mr. Henault said that he would. Mr. Henault asked Mr. North to convey the consensus of the BOF when he attends the Public Building Committee meetings that 1.) the scope is the scope and 2.) the fiscal constraints have not changed. If they want other programs, then something else has to be eliminated. He added that we haven't even gone to bid yet, and if it comes in over budget when we do go to bid, it's going to have to be scaled back.

Ms. Fitzpatrick moved to adjourn the meeting at 8:38 P.M. The motion was seconded by Mr. North and carried unanimously.

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Paul W. Henault, Chairman Roxanne Farrell, Clerk