These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
FEBRUARY 26, 2003
REGULAR MEETING
CALL TO ORDER
The Regular Meeting of the Board of Finance was called to order at 6:02 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, Kevin North and Michael Wade. Also present were First Selectman Thomas Vincent, Director of Finance Kevin Kane, Chief of Police Peter Ingvertsen, Town Engineer Richard Sawitzke and other interested parties.
APPROVE MINUTES
February 11, 2003 Special Meeting
February 11, 2003 Regular Meeting
Ms. Fitzpatrick moved to approve the minutes from the February 11, 2003 Special Meeting and the February 11, 2003 Regular Meeting. The motion was seconded by Mr. North.
Amendments were noted, and completed Action Items were discussed. Mr. Kane stated that he talked to Director of Health, Richard Matheny, about the Small Pox vaccination program. He added that there is no cost associated with it at this time and that they are still working on the master plan.
A vote was taken, and the motion passed unanimously to approve the minutes as amended.
REVIEW 6-YEAR CAPITAL IMPROVEMENT PLAN
The Board members reviewed Mr. Kane's "Proposed - Six Year Capital Improvement Plan Fiscal Year 2003/04 Through 2008/09" and his "Eight Year History of Capital Projects Authorized At a Special Town Meeting / Referendum".
Ms. Fitzpatrick clarified that, while there is no written policy, historically capital bonding has been done every other year and that this is an "off" year. Mr. Henault added that part of the plan was to try to keep the amount of capital at a level that would maintain the 7% debt policy. Ms. Fitzpatrick further added that the 6-Year Capital Plan has been used as a sort of "wish list", and when it comes down to actually bonding and going to Public Hearing during the annual budget process, that's when those projects are either sent forward or not. It is a fluid tool and a useful indicator of what the Town would like to accomplish.
Mr. Kane reviewed the scenarios in his hand-out, "Projected Debt Service on Approved Capital Projects and Proposed Police Station Renovation" (Addendum I). He noted that the Board has had discussions about the high school project costing up to 5% and other debt service being no more than 5%. That goal would be maintained if the Police Station Renovation were approved.
Mr. Askham stated that he would be willing to let the project go forward if the need is established. Mr. North noted that the need is more than just the Police Department strategic needs over the next fifteen years. He stated that a needs assessment has been produced by an independent professional. He added that he thinks the indoor air quality issue that pertains to that level of the Town Hall, and the attendant matters that have arisen because of it, compel the BOF to move forward now. Mr. North also added that his support would include the "add alternate space". He would further include a recommendation to the BOS that this project be moved to the Public Building Committee where there is a lot of expertise available to ensure that the taxpayers get the best bang for the buck and
that good questions are asked about the details of the project as it evolves. Mr. North stated he would encourage the BOS to be very attentive, at the project's presumed completion, to the maintenance issues associated with the space. Everything he has learned on the subject suggests that indoor air quality issues come into existence largely as the result of deficient maintenance and then explode in their severity if not immediately taken care of. He emphasized that he thinks very strongly that the subsequent maintenance issues have to be very seriously considered.
Mr. Henault turned the meeting over to the First Selectman. Mr. Vincent stated that the BOS recently concluded a series of Budget Workshops leading to the adoption of an Operating Budget for 2003/04 with a spending increase of 3.99%. The BOS unanimously approved funding in the amount of $1,989,000 to upgrade and renovate the Police Department. Mr. Vincent stated that the design of the facility was completed in the early 1980s and was occupied in 1984. Since then, no improvements have been made, with minor exceptions, to the functional working area layout, lighting, interior finishes or furnishings. There were 12 employees working within the building during the week, and currently there are 19. The overall department has increased from 37 to 48.
Ms. Fitzpatrick asked Mr. Sawitzke about the costs associated with this that are not included in the $1,989,000. He stated that these are the "add alternatives" and total $243,000. That includes the sally port, storage space and additional upgrading of the HVAC system. Mr. North gave reasons why he feels they should be included in the project: 1.) It is in the strategic long-range plan, and he doesn't know why it was arbitrarily cut. 2.) Presuming that the ad alternatives need to be done sometime during that 15-year plan, he can't think of a better time to do it than when all the trades are on site from a cost-effectiveness point of view. 3.) In terms of disruption, it would be better for the department to do everything now. He added that the debt service burden per year for that small
change order is pretty inconsequential. Mr. North added that the project is 50% - 60% of the cost of a new stand-alone police station.
Mr. North asked Mr. Sawitzke if he could arrange to have a copy of the needs assessment distributed to the BOF members. Mr. Sawitzke said that he would.
Mr. Sawitzke referred to a diagram and explained how the work would progress and where the employees would work during the construction. He stated that they are carrying a dollar contingency for unexpected expenses. He added that the Town Hall doesn't have quite the unexpected things that one would run into in a structural steel building. This is a massive masonry building, and the beams are easily identified.
Mr. Henault asked if there are any State or Federal grants that could be applied for for this project. Chief Ingvertsen answered that to his knowledge there are not at this time.
Mr. Henault asked what the total would be with the add alternates. Mr. Vincent answered that it would be $2,231,696.
Mr. Mason moved to take a short break at 7:10 P.M. The motion was seconded by Ms. Fitzpatrick and carried unanimously
Ms. Fitzpatrick moved to reconvene at 7:15 P.M. The motion was seconded by Mr. Mason and carried unanimously.
Mr. Sawitzke passed out information from the Engineering Department: "Simsbury Police Department Renovation" (Addendum II), and the Board members discussed it.
Mr. North moved to move forward with the Simsbury Police Department Renovation Project to Public Hearing in an amount not to exceed $2.3 million as outlined by the proposals seen tonight. The motion was seconded by Ms. Fitzpatrick.
It was confirmed that the BOF is moving forward with public information at this point and that items on the 6-Year Capital Plan do not have BOF automatic approval. Mr. Askham asked Mr. Kane if the plan will jeopardize a AAA rating. Mr. Kane explained that it would not. Mr. Henault asked Mr. Kane to talk to the Town's Financial Advisor prior to the March 18th meeting when this project might be approved, show them the 6-Year Capital Plan and verify that it will have no negative impact on the Town's rating.
A vote was taken, and the motion passed unanimously.
Mr. North asked to see the total cost of the Simsbury Meadow Project.
Ms. Fitzpatrick asked to have Mr. Kane add in the 6-Year Capital Plan and see what it does to the Debt Service. Mr. Kane stated that he should be able to do that before the March 11th meeting.
Mr. Mason revisited a subject that he had voiced before in that there are certain items on the 6-Year Capital Plan which are typically recurring items. He stated that it seems they should be budgeted differently - either through CNR or as an Operating Expense. One of these is the Computer Technology item.
UPDATE ON FISCAL YEAR 2003/04 OPERATING BUDGET
Mr. Kane reiterated that the BOS came in at 3.99%. He added that all the other operating budgets met their 4.25% or lower on the Special Revenue Funds. He stated that he received a transmittal from OPM which said that State reductions may be $100,000 for the current fiscal year. Mr. Henault added that this was based on the budget that was approved by the House and that the reductions would be $98,000. He stated that the real question is whether the Senate will approve that.
Mr. North handed out copies of three articles for the Board members to read concerning the contributions to the pension plan and the assumed 8% earnings rate. He stated that after reading these he is more convinced than ever that the 8% being used by the actuary is not sustainable nor is it realistic. Mr. Henault asked Mr. Kane to send the articles to Althea Schwartz, the actuary.
OTHER BUSINESS
Mr. Askham asked Mr. Kane when the revaluation list would be finalized. Mr. Kane answered that the Assessor has to file his list with the State by Friday, February 28th. Mr. Askham asked if the citizens have enough time for the appeals process. Mr. Kane stated that the Assessor is going to meet with citizens the first two weeks of March. They can then make an appointment to see the Assessor and the Board of Tax Review in April.
Ms. Fitzpatrick asked if, given the State's fiscal climate, the Board should be thinking about trying to bond the high school project sooner than June. Mr. Kane answered that due to the timeline, they are looking at June, but it could be even later.
Mr. Kane discussed with Board members his preliminary mill rate projection memo that had been handed out.
ADJOURNMENT
Ms. Fitzpatrick moved to adjourn the meeting at 7:44 P.M. The motion was seconded by Mr. Mason and carried unanimously.
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Paul W. Henault, Chairman Roxanne Farrell, Clerk
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