Board of Finance Regular Meeting Minutes-1/20/15

1. CALL TO ORDER

Board of Finance Chairman Peter K. Askham called the regular meeting of the Simsbury Board of Finance to order at 5:46 p.m. on Wednesday, January 20, 2015. The meeting was held in Program Room 2 of the Simsbury Public Library located at 725 Hopmeadow Street, Simsbury, CT. Also in attendance were the following board members: Nicholas B. Mason, Barbara A. Petitjean, Moira K. Wertheimer, Linda J. Schofield and Jeff Blumenthal. Staff included Joe Mancini, Finance Director. Also in attendance were First Selectman Lisa Heavner and Burke LaClair, Business Manager, Board of Education.

2. PLEDGE OF ALLEGIANCE

Everyone stood for the Pledge of Allegiance.

3. APPROVE MINUTES 

November 18, 2014 – Regular Meeting

December 15, 2014 – Special Meeting

Ms. Petitjean made a motion to approve the minutes as amended from the November 18, 2014 regular meeting. The motion was seconded by Mr. Mason and it was passed unanimously.

Amended change:

7. 2015 Calendar of Meeting Dates

Add the words “if approved” to the end of the sentence: Mr. Askham discussed the letter announcing the meetings for 2015 and noted that the meetings will start at 5:30 p.m.

Ms. Petitjean made a motion to approve the minutes from the December 15, 2014 special meeting, and was seconded by Ms. Wertheimer. It was passed unanimously.

4. PRESENTATION OF THE JUNE 30, 2014 AUDIT BY BLUM SHAPIRO

Vanessa E. Rossitto, partner, and Jessica Aniskoff, manager, from Blum Shapiro presented the Comprehensive Annual Financial Report (CAFR) for the Town of Simsbury. No material weaknesses or significant deficiencies were found in the Town of Simsbury’s Financial Statements. A Federal Single Audit and State Single Audit were also completed for Simsbury as the town receives both Federal and State grants and these audits are required in accordance with the rules and regulations mandated by the Federal Government and the State of Connecticut.

Several recommendations were made to the board in regards to:

Internal controls

Capital asset reporting

Implementing a fraud tip line (for the town and board of education)

General ledger maintenance

Accounting procedures manual

Positive pay

5. FINANCIAL CONDITION OF THE TOWN – MANAGEMENT DISCUSSION ANALYSIS

Mr. Askham said he went through the audit and highlighted items for the board to discuss in order to get the true financial position of the town. He called Simsbury a well-run town, but added he had some concerns that he did not want to get away from the board.

6. FINANCE DIRECTOR’S REPORT

Mr. Mancini updated the board on:

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Simsbury Farms

Health insurance

Tax collection

Plowing and sand

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Long-range planning

7. BUDGET GOALS FOR FY2016

Mr. Askham said the goals are to keep the mill rate low, flat or lower than the previous year; keep the bond rating at AAA; and keep the debt service under 7 percent.

Ms. Petitjean said she wanted to make it a goal to come up with viable long-term plan for town.

Ms. Schofield said with the anticipated tax revenue drop when The Hartford leaves, she would like to see a rainy day fund created to help with that transition.

Ms. Petitjean agreed saying that could be a piece of the long-term plan.

Mr. Blumenthal said the town has experienced some of that loss already as employees of The Hartford have been moved.

Mr. Mason said he wants to look at ways to enhance the Grand List. He noted the town used to have an infrastructure fund. He wants to look at ways to promote commercial growth in town.

With the loss of The Hartford, several members noted that the board of education becomes the largest employer in town and if you add town employees to that, no other employer comes close.

Mr. Askham had questions on the possible use of the internal service fund reserves for budget relief: what is accessible, and what are the legalities around that. He made similar remarks on the sewer use fund. He wanted the sewer agency to speak to the board about its next five years.

He also talked about long-term capital in terms of when projects move off the balance sheet, more move in. He said the town maintains 7 percent debt service, but he remembers when it was lower. He suggested the board could consider a policy making debt service lower than 7 percent.

Board members asked Mr. LaClair about the education board’s plans if money from the state is reduced. Mr. LaClair said the education board has heard nothing about funding cuts, but are aware of that possibility.

Ms. Heavner said costs might be incurred by the town if the state Department of Energy and Environmental Protection makes changes to its storm water permit.

8. DISCUSSION OF FY2016 BUDGET GUIDELINES AND POSSIBLE ACTION

Ms. Wertheimer suggested the board hold off on setting guidelines until they have more data.

Mr. Mason said the town and board of education are aware of the goal to have the mill rate low, flat or lower.   

Mr. Blumenthal wondered if there is additional information on the board of education’s budget process. Mr. LaClair said he would relay that message to the superintendent.

9. INTERNAL SERVICE FUNDS – USE OF RESERVES

Mr. Askham said he would like to have experts and the town attorney answer questions about the internal service funds: what is an adequate reserve; what can be used and how, legally.

Members also asked Mr. Mancini to put together some comparisons with other towns that includes information other than mill rate comparisons.

10. OTHER BUSINESS

Members asked Mr. Mancini to respond to an email the board received that dealt with PILOT (payment in lieu of taxes) payments.

ADJOURN

Ms. Petitjean made a motion to adjourn at 8:07 p.m. and Ms. Wertheimer seconded. It was unanimously approved

Respectfully submitted,

Stephanie Riefe