These minutes are for informational purposes only. For official minutes, please contact the Town Clerk's Office.
BOARD OF FINANCE
AUGUST 18, 2004
SPECIAL MEETING
1. CALL TO ORDER
The Special Meeting of the Board of Finance was called to order at 5:46 P.M. in the Board of Education Conference Room at the Simsbury Town Hall. The following members were present: Acting Chairman Peter Askham, Nicholas Mason, Kevin North and Michael Wade. Also present were Board of Education Business Manager David Holden, Finance Director Kevin Kane, Superintendent of Schools Diane Ullman and other interested parties.
Mr. North moved to amend the agenda and discuss agenda item #2, High School Project Update, first. The motion was seconded by Mr. Wade and carried unanimously.
2. HIGH SCHOOL PROJECT UPDATE
Mr. Holden introduced the new Superintendent of Schools, Dr. Diane Ullman, to the BOF members.
Mr. Holden stated that there has been no change in the completion date since the last report. He added that there have been rumors that that the high school isn't going to be open on time, but it is. He stated that the concrete is now at the proper moisture content so that floors can be put down.; furnishings started to be delivered today; inspections by the Building Official and Fire Marshall are scheduled for Friday and then Monday.
Mr. Askham asked about an issue with the sprinkler system. Mr. Holden stated that new windows were installed in the entire school, not just the new addition. The high school, as of September, does not have a fully activated sprinkler system. The area of the new window openings and the type of windows that have been installed, although compliant relative to a fully suppressed building, don't meet the code given a non-fully suppressed building. As a result, one window in each classroom has been removed and replaced with a temporary window that can be used as an emergency means of egress. In addition, the smoke detection has been installed throughout, and the sub-contractor has accelerated the work relative to sprinklering of the main hallways throughout the building. There will also be a
firewatch by the Fire Department from the beginning of school for six or nine weeks. Mr. North asked if anyone has estimated the cost. Mr. Holden answered that O&G has. Mr. North asked if there has been any thought this might be O&G's responsibility. Mr. Holden answered that it is a topic of discussion for the Building Committee.
Mr. Askham asked whether the other issue with the pipe has been resolved yet. Mr. Holden had no update. Mr. North offered that there is no resolution of the claim, and at its maximum amount, the members of the PBC think that it has a value of somewhere between $420,000 and $430,000.
Mr. Askham commented that the progress looks good as he drives by and joked about getting a Grand Tour. Dr. Ullman stated that there is a tour scheduled for August 30th at 6:00, and she invited the BOF members to join them.
3. APPROVE MINUTES
June 15, 2004 Regular Meeting
Mr. Mason moved to table the approval of the minutes from the June 15, 2004, Regular Meeting again. The motion was seconded by Mr. North.
It was agreed that the minutes were confusing and were missing some points entirely. It was decided that the clerk would make a copy of the audio tape of the meeting and get it to Mr. Askham so that he, or another Board member, can listen to it and determine how the meeting's content can be properly reflected in the minutes.
A vote was taken, and the motion passed unanimously.
July 21, 2004 Special Meeting
Mr. North moved to approve the minutes from the July 21, 2004, Special Meeting. The motion was seconded by Mr. Wade.
The Open Action Items were discussed, and one change was made.
A vote was taken, and the motion passed unanimously.
4. FISCAL YEAR-END 2003/04
Mr. Kane handed out his 8/17/04 memo, "Preliminary Fiscal Year 2003/04 General Fund Financial Results," and reviewed it. He stated that they're still going through the year-end audit and that the figures are subject to change.
Mr. Askham asked about the self-insurance fund and whether they were going to have to transfer anything from Reserves. Mr. Kane answered that at this point he feels they will not.
Mr. Askham mentioned the pre-audit conference scheduled for September 3rd and that anyone who wants to attend is invited.
Mr. North brought up the deficit in Golf and noted that the new golf course in Bloomfield, Wintonbury Hills, has a professional management firm running it. He wondered if the Town of Simsbury would be well advised to at least engage the services of such a firm to evaluate our operation. Mr. Askham suggested having that as an agenda item once the year-end winds down.
5. UPDATE AND DISCUSSION ON SPECIAL TOWN MEETING FOR THE HIGH SCHOOL TRACK AND STADIUM FIELD IMPROVEMENTS
A memo from Brandon Robertson, Assistant to the First Selectman, (Addendum I) and the notice of the September 14, 2004, Special Town Meeting were introduced and discussed with Mr. Kane leading the discussion. Mr. Kane said he will be talking with Atty. Ted See and will ask him what the BOF can and can't do regarding the Town Meeting. Mr. Askham suggested having a Special meeting in September sometime before the Town Meeting to discuss the bond language and decide what policy statement the BOF may want to make. Mr. Askham confirmed with Mr. Kane that since this is under 3% of the current Operating Budget, there will be no referendum. Just yea or nay at the Town Meeting.
6. DISCUSSION IN PREPARATION FOR THE JOINT MEETING WITH THE BOARD OF EDUCATION TO FOLLOW AT 7:00 PM
Mr. North strongly suggested treating compensation in the truest sense of the word which includes salary and also the Town's portion of the benefits - health care, pension, and so on. With 70% or more of the Town's expenses going to personnel costs, the remaining 30% of the budget gets inexorably squeezed.
Mr. Askham quoted from the 7/21/04 letter from Dr. Ullman regarding the BOE's upcoming salary negotiations: "If the negotiating parties proceed to arbitration, a representative of the Board of Finance 'shall be heard' at the arbitration hearing regarding the financial capability of the school district." He recommended that the BOF set up a committee of two in order to be prepared. Then one of the two would go to the arbitration hearing. He added that someone from the BOF has to speak on behalf of this information otherwise they are considered to have no opinion. Mr. North reminded the Board that two members are missing tonight. Mr. Askham stated that he would be interested in serving on the committee of two when it is formed.
Mr. North continued the discussion on total compensation. He stated that in the past two years, they have established a cap on expense increases. That cap was at a level lower than the contract for salary increases for the BOE. Inescapably, the remainder of the budget took the brunt of the cap. He offered that going into this contract negotiation is a rare opportunity for the BOF to give a strong indication that they desire that the total comp increase be brought back down to historical averages. He suggested putting a cap on total comp costs of 3.5% and make adjustments for enrollment increases that might dictate the hiring of a teacher or two. Mr. Askham felt the BOF should discuss whether they still want to manage the budget with a cap.
Mr. North stated that if the rule for the last budgets holds forth for this coming fiscal year, then every percentage in expenses will translate into an equal percentage increase in taxes. Mr. Askham recommended assuming zero Grand List growth until they see otherwise. Mr. Mason suggested that the key element is Grand List and asked whether a cap shouldn't be tied to a projection of what the Grand List growth is going to be. Mr. North countered that that's a revenue issue, not an expense issue. Mr. Askham stated that he is inclined to stay with a cap. Mr. Mason asked what other alternative there is besides a guideline. It was agreed that there is none.
Mr. North posed a rhetorical question for purposes of illustration. He wondered what the BOF members would think of passing a motion that the budget cap for the next three years would be 3.5%. It would be a reality out there for everyone to think about and would have a very moderating effect on budget discussions. Mr. Wade suggested a more prudent approach would be to come up with a number of what they can live with for total comp. Mr. North stated that the taxpayers deserve a rate of increase of expenses that doesn't exceed "X". He asked why the Town is entitled to a greater rate of tax increase than the means of the citizens to pay for it.
Mr. North noted that they have had to dip into the General Fund Reserves to pay benefits costs after the fact because they weren't adequately funded. In response to Mr. Askham's question, Mr. Kane replied that transfers were made two years, one for $601,000 and one for $143,000.
Mr. Mason stated that he thinks over the last few years they've come to the conclusion that a cap is the best alternative. After considerable discussion, Mr. Askham summarized by saying that he believes the sentiment is to have a budget cap, but he would not recommend doing anything about it tonight without a full Board.
Mr. North moved that the Board of Finance put the establishment of a long-term budget cap on the agenda for their next Regular meeting. The motion was seconded by Mr. Mason.
Mr. Wade asked if this were to be a formal budget policy. Mr. North replied that this would only be a discussion for the next Regular meeting. Mr. Mason cautioned against having a very long-term cap, such as the 5-year budget cap Granby had with pressure building up at the end of the cap time period. Mr. Askham reiterated that this would be only for discussion at this point.
A vote was taken, and the motion carried unanimously.
7. ADJOURNMENT
Mr. North moved to adjourn the meeting at 7:04 P.M. The motion was seconded by Mr. Wade and carried unanimously.
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Peter Askham, Acting Chairman Roxanne Farrell, Clerk
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