Simsbury, CT - Board of Finance Minutes

The Regular Meeting of the Board of Finance was called to order at 6:00 P.M. in the Main Meeting Room at the Simsbury Town Hall. The following members were present: Chairman Paul Henault, Peter Askham, Candace Fitzpatrick, Nicholas Mason and Kevin North. Also present were Finance Director Kevin Kane, Board of Education Business Manager David Holden, two of the Town's auditors from Blum, Shapiro & Company, P.C.: Lori Budnick, Partner and Vanessa Rossitto, Manager in charge of the engagement and other interested parties.

Ms. Fitzpatrick moved to approve the minutes from the November 26, 2002, Board of Finance Special Meeting. The motion was seconded by Mr. North. The vote was unanimous to approve the minutes as amended.

Discussion ensued, and the members agreed to keep all the dates as they appear in the draft calendar except for Thursday, February 27, 2003. That will be moved back one day to be held on Wednesday, February 26, 2003.

Mr. Kane went over the Town of Simsbury Connecticut Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002, the Federal Single Audit Report and the State Single Audit Report.

Mr. Henault introduced Ms. Budnick and Ms. Rossitto. Ms. Rossitto reviewed the reports and said that they found nothing materially wrong with the Town's internal controls. She stated that their Management Letter contained suggestions for improvements. She added that there have been no significant changes from the past year and that everything looks very good.

Mr. Askham referred to the pension footnote on pages 20 and 21 of the comprehensive audit report. He expressed concern over the Town's future pension contributions. Ms. Rossitto suggested he bring the matter up with the actuaries. Mr. Kane discussed his hand-out, "Town of Simsbury Employer Pension Contribution" (Addendum I).

Mr. Henault discussed the wording of the Management Letter in that the suggestions for improvement sound like more than suggestions. He wondered how the rating agencies would look at it. Ms. Budnick answered that the suggestions appearing in this letter are not reportable conditions, merely suggestions. However, she stated that she appreciated the Board's sensitivity to what is written and offered to go over the letter with Mr. Kane to see if they could fine tune it a bit, soften it a bit and talk about some of the initiatives that have been accomplished.

Mr. North moved to approve all three audit reports and to authorize Mr. Henault and Mr. Kane to work with the auditors on amending the Management Letter. The motion was seconded by Ms. Fitzpatrick and carried unanimously.

Mr. Holden reviewed the memo from Joseph Townsley handed out to all BOF members, "Financial Report/November 30 Budget Analysis". He expressed concern that, as a result of the Governor's proposed budget recisions, Simsbury's education revenue would be impacted for the current fiscal year. Mr. Henault suggested that the BOF meet as soon as they find out what the impact will be.

Mr. Kane reviewed his memo dated December 11, 2002, "Financial Performance Report - Five Months Ended November 30, 2002". He noted the increase in snow removal expense over this time last year and added that last year there was a surplus. A surplus was projected for tax revenue, but there may be a shortfall in investment income because the rates have gotten even lower.

Mr. Kane then reviewed his "Simsbury Farms Special Revenue Fund Report" worksheet. Mr. Henault stated that revenues vrs. expenses was still an area of concern. Mr. Askham asked if there is a contingency plan or back-up plan in case Simsbury Farms will not make budget. Mr. Kane said that he did not know and could not speak for Gerry Toner or Tom Vincent. Mr. Henault recommended asking Mr. Toner for monthly projections and agreed to draft a letter to him.

Mr. Henault stated that the Board needs to focus on the legal fees for Meadowood. He added that he could see the legal bills being as much as $175,000 - $190,000 by the end of the year, and they are not in the budget. Mr. Wade directed a question to BOS member Anita Mielert as to where the Town stands as far as law suits. She stated that the Town was upheld on the WPCA detail (the appeal failed). She added that there was a positive result on the wetlands lawsuit - six different ways. An appeal may be filed. Mr. Henault wondered where the money would come from for the continuing Meadowood legal expenses. Mr. North and Mr. Mason both expressed an interest in having it be a budgeted item.

Mr. North reported on the last meeting of the Public Building Committee. He stated that it appears to him that discipline is being maintained in terms of program changes. He hoped that all State reimbursements for this project would remain as the Town has expected. Mr. Holden reassured him that the funds have already been authorized and that he has been advised that any project which Simsbury had local funding for prior to June 30th cannot be touched. That includes the high school project.

Mr. Henault stated he would like to schedule the actuary for the January BOF meeting. Mr. Askham and Mr. Mason volunteered to develop questions in advance for the actuary and forward them to Mr. Kane who will get them to the actuary.

Mr. Henault stated that there was a request from the Simsbury Parent/Teachers Association to get together with the BOF at a forum on January 15th. He had already agreed to attend, and Mr. Wade agreed to join him. It will be held in the Simsbury High School Media Room at 7:00.

Mr. Henault stated that the Planning Commission has asked for feedback with respect to the Plan of Development. He asked if any of the BOF members has a copy of the 1994 Plan of Development. Mr. Mason stated that he went to the library and looked it up, so it is available there. The Planning Commission is asking the BOF's thoughts on what they may want to include in the Plan of Development. Other Boards have already given them feedback. Ms. Fitzpatrick volunteered to head a sub-committee to prepare something for the Planning Commission. She added that she will e-mail the results to the other BOF members for their review.