These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
OCTOBER 21, 2003
REGULAR MEETING
CALL TO ORDER
The Regular meeting of the Board of Finance was called to order at 6:00 P.M. in the Main Meeting Room of the Simsbury Town Hall. The following members were present: Chairman Paul Henault, Peter Askham, Kevin North, Michael Wade and Candace Fitzpatrick (6:07 PM). Also present were Board of Education Business Manager David Holden, Finance Director Kevin Kane and other interested parties.
APPROVE MINUTES
September 16, 2003 Regular Meeting
Mr. Askham moved to approve the minutes from the September 16, 2003
Regular meeting. The motion was seconded by Mr. Wade and passed with
three (3) Yes votes and with Mr. Henault abstaining.
September 29, 2003 Special Meeting
Mr. North moved to approve the minutes from the September 29, 2003 Special
meeting.. The motion was seconded by Mr. Wade and passed with three (3) Yes votes and with Mr. Henault abstaining.
Reports on the Open Action Items
Mr. Sawitzke, Town Engineer, reported on the timeline for the Water Pollution Control Facility Project Upgrade. Mr. Sawitzke stated to the BOF there had been no changes since the last meeting, they met their submittal date of June 30th, and they have asked for an extension for a later construction start date.
Mr. Holden reported on the Simsbury High School Renovation Project (Addendum I). This report also has been unchanged since the last meeting. The main changes that took place during the previous month were in terms of the completion date of the high school project. The renovation phases 2 through 11 changed the anticipated completion date of the final phase from December 30th to February 9th as a result of incorporating new tile into the existing classrooms. This creates each phase to take about 2 weeks longer. The change in projected construction costs and the contingency funds are approximately $1,000,000 due to replacing all windows, doors, stair towers, renovating the locker rooms, and improving the exterior and flooring mentioned. The only significant
problem that has occurred to date is the delivery of steel, which is expected to be 2 weeks to a month late.
Mr. North added that this delay in the high school project was “worst case” scenario, and regarding the $1,000,000 worth of initiatives; the contracts have not been let yet except for the window replacement.
Mr. North reported on the Police Department Renovation Project. An extensive presentation to the Public Building Committee was made presenting a new schematic floor plan. This involves some reshuffling within the existing footprint, however it results in a more secure and functional layout. Public access in this case, which is a security issue, will be confined to the records and dispatch lobby. The hard dollar cost for this portion of the work is estimated at $1,300,000. The Town Engineers office will put an overall budget together.
Mr. North reported on ENO Memorial Hall. The current estimate of construction costs were presented, and the good news is they are doing a comprehensive and thorough job and taking into account the historical significance of the building and trying to not disturb features which are historically relevant. The project hard costs however are growing and estimated at $741,000. This is in the neighborhood of $200,000 more than previously estimated. The Public Building Committee has directed the engineers to proceed to design the entire project and maintain the previously established schedules.
Mr. North reported on the ENO Memorial Hall Special Revenue Fund Policies and Procedures sub-committee meeting. Mr. North stated that Nick Mason had not been able to attend this meeting. Joel Mandell, Bill Garrity and Mr. North met and discussed this at length. Connecticut statue prevents the Town from investing funds in anything other than riskless assets. This will constrain the earning rate at present by about 2% at best. It was concluded that putting larger funds aside to let them grow (at a rate faster than inflation) would diminish purchasing power over time. A summary was produced (Addendum II) which stipulates the facts given by Kevin Kane and establishes a proposed policy. The fund balance as of September 25th shows a state grant of $200,000.
Kensett painting proceeds received $196,338. ENO Trust Distributions had three to four unencumbered funds of $92,500, and unencumbered funds from previous operating budgets of $46,017. This shows a grand total of $534,855.
The proposed policy, which will be brought before the Board of Selectmen, will recommend none of the aforementioned funds shall be used for operating expenditures relating to ENO. By extension, all operating funds for ENO will be provided for within the regular annual budgeting process. Finally, some or all of the above-mentioned source of funds, shall be available for ENO Capital projects, which must be approved by the Board in accordance with existing policies.
Mrs. Fitzpatrick explained on the issue of paying taxes by credit card, a date of October 24th was scheduled for a meeting with Cathy Hayes. A report will be given on this subject at the next BOF meeting.
REQUEST FROM RESERVES FOR THE ROSEDALE FARM PRESERVATION PROJECT
Mr. Wade excused himself from the discussion and vote because he owns property abutting the Rosedale Farm. Mrs. Fitzpatrick excused herself from the discussion and vote because she is a member of the Simsbury Land Trust.
It was stated for the record by the chairman that the BOF did have a quorum, 2 members would abstain from the vote, and a vote would proceed.
T. J. Donohue made a presentation on the request for the approval of funding for the Rosedale Farm Preservation Project. A review was given on the Simsbury Land Trust request sent to the Board of Selectmen October 8, 2003 (Addendum III). This pending request asks for a grant of $91,750 to complete the final phase of the fundraising of $1,600,000 for purposes of purchasing development rights from Rosedale Farm.
Mr. Donohue explained that if the funding was secured a closing could take place in late November. A Deed of Restrictions granted by the Epsteins to the Land Trust will transfer all rights of future development to the Land Trust. The property can only be used as agricultural property, except for a slice of the property under a separate easement giving public access along 1,000 feet of riverfront. This access is located and will remain at the Farm Store. As a safeguard, contingent rights are contained in the Deed, which are conveyed to the U.S. Dept. of Agriculture, to enforce the restriction and protect the use of the land forever.
A combined grant was given by the Federal and State Government of $1,267,500, and Mr. Donahue said all the grants were in place and $170,000 had been raised by the community. No money from the funds will be spent on Lawyers.
Mr. Donahue answered a question about the appraisal of the property, and stated 2 appraisals had been done, approximately 60% of the property is in the flood plain, and these appraisals were done for the development rights, and not for the land.
Further discussion and questions took place and the BOF then moved to vote.
Mr. North moved to accept the recommendation of the Board of Selectmen
to approve a supplemental appropriation from the undesignated general fund,
fund balance in the amount of $91,750, pursuant to Section 908 © of the Charter of the Town of Simsbury, to be granted to the Simsbury Land Trust for the
purpose of funding various transactional expenses, including, but not limited
to, the cost of the surveys and appraisals, associated with the acquisition of Development Rights to the Rosedale Farm Property solely to be available at the time of the closing. The motion was seconded by Peter Askham and passed with three (3) Yes votes and Mr. Wade and Mrs. Fitzpatrick abstaining.
FINANCIAL REPORTS
Mr. Holden reviewed the Simsbury Public Schools 2003-04 September 30, 2003 First Quarter Budget Analysis Projected Through June 30, 2004 (Addendum IV).
The State education grants are expected to be approximately $40,000 below the 2002-03 levels. It is projected the special education excess cost grant revenue will be $150,000 over original budget. The expenditure items were reviewed giving a projected deficit of $147,640. Sewer assessment and insurances had surpluses, however the out-of-district tuition account was at a deficit.
Originally 23 students had been budgeted for and of those 3 were able to return, one moved out, and 11 students have been added. One student, multiply handicapped, is from the Oakhill Group in Bristol, and one is from Pratt River Street, receiving 12 months of schooling a year. Roughly 12 students have reached the 5-time threshold.
It was asked if it is becoming a trend for Simsbury to be adversely selected, and Mr. Holden said the number of kids has increased over the past 4 years. Also it was questioned if legislature is lowering the 5-time cap, and it was stated this remains as is due to the budget.
Historically funds that come in had gone to the Town General Fund, but a request will be made by the BOE that these funds be applied as an offset to the BOE operating budget.
Approximately 700 students receive special education services out of the near 5,000-student population.
A summary of staffing compared to the prior year was reviewed in this analysis as well.
The FTE total of 629.8 was the actual number of staff last year. That number for 2003-04 is 634.84. Enrollment is expected to be where thought at 4,996.
Mr. Kane reviewed the Financial Performance Report – Three Months Ended September 30, 2003 (Addendum V). He stated there was not much difference in the expenditure side compared with last year. The areas of concern are the legal fees for the Meadowood project and expenditures for the police overtime account. The revenue report was also summarized with areas of concern.
Mr. Kane reviewed the Budget Worksheet Projected Investment Income for Fiscal Year 2003/04 (Addendum VI). This shows a projected investment income as of 9/30/03 of $202,835.39
Mr. Kane reviewed the Simsbury Farms Special Revenue Fund Summary Report (Addendum VII). This shows a budget deficit of $118,000, however in the remaining 9 months to go a surplus of $46,000 would be needed in the expenditure budget to break even. Expenses are holding the line.
FISCAL YEAR 2004/05 BUDGET PLANNING
Mr. Henault suggested starting at the beginning as usual with the economic factors, and this will be discussed further at the November meeting. Last year discussions took place regarding a cap versus a guideline, and action was taken at the November meeting, with a workshop in December. Kevin North volunteered to put the figures together for this year.
UPDATE OF CAPITAL PROJECTS/OTHER BUSINESS
Mr. North reviewed the Town of Simsbury Board of Finance/Board of Selectmen Proposed Eno Hall Spending Policy as submitted by the Eno Memorial Hall Special Revenue Fund Policies and Procedures sub-committee at their September 25, 2003 meeting (Addendum VIII).
It was stated by Mr. Kane that the Trust does provide for operational expenses. The First Selectmen has always had the discrestion on how to spend these funds.
The state grant received was for air conditioners. The figure for ENO Trust Distributions is what has been given to date.
It was asked whether a local municipal policy could supercede the Trust language. Mr. Kane was not sure but did say he did not know if legally the BOF could supercede the First Selectmen. The Trust Fund has always been used for capital but this is discretional.
Mrs. Fitzpatrick stated that this discussion came up around an improvement project for ENO, and it might make sense for the sub-committee to make a recommendation about what to use for the project.
In response to Anita Mielert’s question about funds being blended together, Mr. Kane stated the funds remain separate.
Mrs. Fitzpatrick stated that the sub-committee may want to reconsider on ENO Hall spending policy and speak to Kinsett proceeds and make a recommendation on that.
OTHER BUSINESS
Mr. Henault told the BOF members to look over the proposed calendar dates for next year to be discussed at the November meeting.
ADJOURNMENT
Mrs. Fitzpatrick moved to adjourn the meeting at 7:17 P.M. and passed unanimously.
Respectfully submitted,
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Laurie Lungarini, Clerk
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Paul Henault, Chairman
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