These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
NOVEMBER 26, 2002
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 6:15 P.
M., in the Board of
Education Conference Room at Simsbury Town Hall. The following members were
present: Chairman
Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason, Kevin
North, and Michael Wade.
Also present were Finance Director Kevin Kane, Board of Education Business
Manager David Holden,
Culture, Parks, and Recreation Director Gerry Toner, and other interested
parties.
2. APPROVAL OF MINUTES
October 15, 2002 Regular Meeting
A motion was made by Ms. Fitzpatrick to approve the minutes of the October
15, 2002 Regular
Meeting with the following revisions recommended by Mr. North and Mr. Mason:
Page 4, third paragraph, fourth sentence to read, "...COLA increase of only
1.4% this year."
Page 4, fourth paragraph, second sentence to read, "...5.05% on a median
basis..."
The motion was seconded by Mr. Askham. Mr. Wade abstained. Motion passed.
October 24, 2002 Special Meeting
A motion was made by Mr. North to approve the minutes of the October 24,
2002 Special
Meeting, as presented. Seconded by Ms. Fitzpatrick, and unanimously
carried.
November 13, 2002 Special Meeting
A motion was made by Ms. Fitzpatrick to approve the minutes of the November
13, 2002
Special Meeting, as presented. Seconded by Mr. North, and unanimously
carried.
A motion was made by Ms. Fitzpatrick to amend the agenda to address item #7,
Financial
Reports. Seconded by Mr. North, and unanimously carried.
3. FINANCIAL REPORTS
Board of Education
Mr. Holden reviewed his November 26, 2002 memo, "Financial Report/October 31
Budget Analysis",
and the attached Staffing Comparison Report. In response to a question
regarding enrollment, Mr.
Holden responded that it remains the same as last month.
Chairman Henault asked if the projected deficit of $63,000 may be reduced
over the course of the year.
Mr. Holden replied that the Board of Education has held back over $150,000
in equipment, and will
continue to hold back other expenses.
Board of Finance November 26, 2002
Special Meeting Page 2
Chairman Henault asked if all staff position have been filled. Mr. Holden
replied that there are still a
psychologist position and 3 or 4 paraprofessional positions that remain
unfilled.
Chairman Henault also asked if any school suffered significant damage due to
the storms of the previous
week. Mr. Holden replied that they had not.
Board of Selectmen
Mr. Kane reviewed his memo of November 21, 2002, "Financial Performance
Report - Four Months
Ended October 31, 2002".
Simsbury Farms Special Revenue Fund
The Board reviewed the "Simsbury Farms Special Revenue Fund Summary Report".
Chairman Henault noted that Simsbury Farms expenditures have increased over
last year, while
revenues have gone down. Mr. Kane reminded the Board that, last year, there
were debt service
payments as part of the Simsbury Farms budget in the amount of approximately
$180,000. With that in
mind, Mr. Kane noted that expenditures are very similar this year to last
year. However, he further
stated that there is concern over this fund as it is highly dependent upon
the golf course and, if Spring
2003 is not a good golf season, it will greatly impact this fund.
Chairman Henault reminded Mr. Kane and the Board that the Board cannot
transfer funds to the
Simsbury Farms account if it gets into financial trouble. Mr. Kane replied
that he understood that and
he had no intention of asking the Board for additional funds.
Ms. Fitzpatrick suggested that a freeze be placed on all Simsbury Farms
expenditures until such time as
it appears that the fund will be able to at least break even on revenues and
expenses.
Chairman Henault questioned whether Simsbury Farms should continue to have a
Special Revenue
Fund. Mr. Kane responded that last year was the first year that this fund
did not show a profit. Mr.
North also responded by stating that he is in favor of Simsbury Farms
remaining as a Special Revenue
Fund because it gives the Board a true picture of how the facility is
performing and meeting residents'
needs. Mr. North also suggested that the town consider hiring the services
of a golf course consultant
for recommendations.
Gerry Toner interjected that the Simsbury Farms Fund is approximately
$35,000 ahead of where it
stood at the same time last year. He also noted that insurance pension
benefit costs are $30,800 more
than last year, and construction costs related to the clubhouse totaled
approximately $18,900 this year.
In addition, Mr. Toner stated that seven weeks of summer camp were held in
the 2002/2003 fiscal year,
while only six weeks of camp were held in the 2001/2002 fiscal year. These
items, and others, added to
the Simsbury Farms expenses this year. Also, he informed the Board that
Simsbury Farms will see a
savings in security and golf course maintenance costs of approximately
$10,000 and $7,200,
Board of Finance November 26, 2002
Special Meeting Page 3
respectively. Part-time staff costs will also be reduced by approximately
$5,000. Toner added that
programs can be reduced in the Spring, if necessary.
Ms. Fitzpatrick asked if the programs considered to be "successful" are also
profitable for Simsbury
Farms. Mr. Toner replied that the successful programs are all profitable
and do support themselves.
Ms. Fitzpatrick asked for actual numbers for each program, including
administrative costs, at future
meetings.
4. High School Modernization project update/bonding issues
Mr. North informed the Board that the high school project is staying within
the budget, as targeted.
Bids are expected in April/May 2003.
Chairman Henault reminded the Board that, of the different options presented
to them regarding
General Obligation Bonds, the Board was in favor of Option 2B, which would
require a $30M bond
with an issuance date of July 15, 2003.
Mr. Askham asked what will be done with the interest that will accrue
between the issuance date of the
bond and the date that the bond is actually spent. Mr. Kane replied that he
will have to check with the
Town's auditors, but it will probably be reinvested in the project. Mr.
Askham responded that he
believes that the interest has to go back to the taxpayers by way of the
general fund.
Chairman Henault summarized by asking if the Board should use $30M at level
principal with two
payments (one in July 2003, and one in January 2004), or $30M at level
principal with one payment.
Mr. Askham stated that he was in favor of the $30M/2 payment plan. Ms.
Fitzpatrick concurred.
A motion was made by Ms. Fitzpatrick to break for two minutes. Seconded by
Mr. Askham,
and unanimously carried.
A motion was made by Ms. Fitzpatrick to resume the meeting. Seconded by Mr.
Askham, and
unanimously carried.
5. Discussion on 2003/04 Budget Guidelines and Possible Action
Chairman Henault opened a discussion on the budget guidelines vs. budget cap
issue.
A motion was made by Ms. Fitzpatrick to set a budget cap for the 2003/2004
budget year. The
motion was seconded by Mr. North.
Mr. Wade asked if the cap would be on a tax increase or a budget increase.
Ms. Fitzpatrick replied that
her motion related to the operating budget increase.
Ms. Fitzpatrick withdrew her motion. Mr. North withdrew his second.
Board of Finance November 26, 2002
Special Meeting Page 4
Mr. Kane projected a table depicting tax increase percentages based on
various expenditure caps.
The Board considered the different expenditure caps and how each would have
an effect on the
residents' tax increase for the 03/04 budget, keeping in mind that most
residents will already be paying
more in taxes due to the results of revaluation.
A motion was made by Mr. North that the Board of Finance direct the Board of
Education and
the Board of Selectmen to limit their operating increases for the 2003/04
budget to no more than
4.25% over the 2002/03 operating budget. Seconded by Ms. Fitzpatrick, and
unanimously
carried.
6. Calendar of Meeting Dates - 2003
Chairman Henault requested that the April 8, 2003 meeting be changed to
April 10. All Board members
agreed.
7. Capital Projects Approval Time Table
The Board reviewed the Capital Projects Approval Time Table provided to them
by Mr. Kane.
8. Operating Budget Calendar
The Board members reviewed the Operating Budget Calendar provided to them by
Mr. Kane.
9. Annual Report Sub-Committee
Ms. Fitzpatrick volunteered to serve on the Annual Report Sub-Committee.
5. Discussion on 2003/04 Budget Guidelines and Possible Action (continued)
A motion was made by Ms. Fitzpatrick to follow the recommendation, made by
Kevin Kane in
his memo to the Board dated November 26, 2002, that the Board of Finance
allow an annual
CNR appropriation of no more than $795,000. Seconded by Mr. North, and
unanimously
carried.
10. Adjournment
A motion was made by Mr. North to adjourn the meeting at 8:54 P. M. Meeting
adjourned.
_____________________________ ________________________________
Paul W. Henault, Chairman Lisa Arakelian, Acting Clerk
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