BOARD OF FINANCE
FEBRUARY 11, 2003
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 5:31 P.M. in the Board of Education Conference Room at the 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 and other interested parties.
DISCUSSION AND IMPLICATION OF STATE BUDGET
Mr. Henault handed out 2 memos from the Connecticut Conference of Municipalities: "State Budget Update - Governor's Proposed Mid-Year Cuts, Impact on Simsbury" dated December 16, 2002 (Addendum I) and "Municipal Aid Proposed to Be Cut by At Least $30 Million This Year: General Assembly Vote Could Come Next Thursday, Impact on Simsbury" dated January 17, 2003 (Addendum II).
Mr. Henault stated that he talked to Simsbury's two Representatives today, and that they were not confident that anything would be resolved soon. Mr. Henault referred to the 12/16 memo, and Mr. Kane stated that a cut in Town Aid to Roads would have no impact right now on taxation because it is a separate fund. Mr. Henault noted that the BOE has been holding back and not authorizing expenditures and that that is good news.
In response to Mr. Askham, Mr. Kane answered that even though there is a decrease in interest income, taxes should help break even. He added that based on the numbers in the memos, Simsbury will be fine this year.
Mr. Askham expressed concern that revenues, interest and fees are going to be down, and if there are significant State cuts next year, he wondered how the budget would be balanced. By raising taxes? Taking money out of Reserves? He noted the importance of Reserves while thinking of going to a rating agency.
Ms. Fitzpatrick suggested waiting for the revaluation impact which is what's really going to tip the scales.
Mr. Henault gave some options to balance the budget: 1.) Go back to using surplus. 2) Pass it on as a mill rate increase. 3.) Go back to the Boards and tell them they have to reduce their budgets, but by May, it will be too late for that option. He added that the only two options that were feasible were the first two.
ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 5:55 p.m. The motion was seconded by Mr. North and carried unanimously.
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Paul W. Henault, Chairman Roxanne Farrell, Clerk
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