Board of Finance Regular Meeting Minutes-7/15/14

BOARD OF FINANCE

REGULAR MEETING – 6:00 PM

MINUTES

JULY 15, 2014

CALL TO ORDER

Mr. Askham, Chairman, called the Regular Meeting of the Board of Finance to order at 6:07 P.M. on Tuesday, July 15, 2014 in the Main Meeting Room of the Simsbury Town Offices located at 933 Hopmeadow Street, Simsbury, CT.  The following members were also present: Barbara Petitjean, Jeff Blumenthal, Nicholas Mason, Linda Schofield and Moira Wertheimer. Also present were Mary Glassman, First Selectman, Joseph Mancini, Director of Finance/Treasurer, Leslie Brigham, Commissions Clerk and other interested parties.

Pledge of Allegiance

Everyone stood for the Pledge of Allegiance

Approve Minutes

June 17, 2014 – Regular Meeting

Ms. Petitjean made a motion to approve the minutes as amended from the June 17, 2014 Regular Meeting.  The motion was seconded by Mr. Blumenthal and was passed unanimously.  Mr. Mason and Ms. Wertheimer abstained.

Finance Director’s Report

Mr. Mancini noted that the collection rate will be around 99.45%.  He stated that the Town has retained Blum Shapiro for another year and will be giving them the majority of the Town’s work at the end of September.  Mr. Mancini noted that he is targeting a mid –November draft. 

Mr. Mancini discussed the Simsbury Farms sub-committee and that there has been more progress with some analysis. 

Mr. Mancini discussed the Estimated Reserves and that it had very little change over the last month.  He stated that the Town will have $1.7 million in revenue and he estimated the deficit around $200,000. 

Mr. Mancini and Board members discussed the Simsbury Farms deficit and when it should be resolved.    

Mr. Mancini discussed Bonds with the Board members and how they are issued.  He stated that there is currently no policy on how Bonds have been handled in the past.  Mr. Mancini would like to present some type of recommendation for how Bond premiums are treated at a future Board of Finance meeting.  Board members discussed alternatives for Bonds issued.

Mr. Mancini noted that Ms. Heavner and Ms. Cook have been appointed from the Board of Selectmen for the Long Range Plan meetings.  He stated that the Board of Education has not yet appointed anyone.  Ms. Petitjean stated that they have had some pre-meetings to figure out how to lay things out so that there is data for people to look at when the meetings start. 

Reserve Policy “Discuss Only”

Mr. Askham referenced the Reserve Policy handout given to Board members and stated that it is for discussion only and does not want to vote on it at this meeting. 

Mr. Mancini discussed and reviewed the handout with Board members.  Items on the General Fund Balance Policy handout include:

Policy Statement

Governmental Fund Type Definitions

Fund Balance Definitions

Restricted Fund Balance Categories

Unrestricted Fund Balance Categories

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FY’14 Budget Transfers

Mr. Mancini reviewed and discussed the following Fiscal Year 14 Budget Transfers with the Board of Finance members.  They included:

Contractual Changes:Salary adjustments, Contingency

FY’ 14 Snow: Labor, Salt Supplies

Agreed Upon Procedures:Audit Services

Simsbury Farms Cleanup FY’13

Mr. Mancini also referenced a memo from Mr. Thomas Cooke, Director of Administrative Services, to Mr. Hiram Peck for Funds for Comprehensive Revision of Zoning Regulations in the amount of $25,000.  He noted that there is $25,600 left in an old Capital Non-Recurring Fund that has long been closed.   Mr. Mancini recommended funding this request out of this fund. 

Ms. Petitjean made a motion to approve the Fiscal Year 2014 Budget transfers set forth in the June 23, 2014 memo from Joseph Mancini in the following amounts

(see attachment No.1): 

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Close out old Capital Authorizations

Mr. Mancini reviewed the Appropriations and Fund Balance handout with the Board members.  Items for the Town included:

Gertsen Land Purchase 5/08

Triangle Land Purchase

Paving Management

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Library Expansion 5/06

Simsbury Farms renovations

Ethel Walker Phase II

Items for the Board of Education included:

Computer Technology Improvement 5/06

HVAC Boiler Replacement 5/08

Squadron Line Generator 5/09

District Network Infrastructure 5/10

High School

Funding for the Henry James Lockers

Mr. Blumenthal made a motion that we recommend and approve the appropriations for the Town of Simsbury $280,000 in accordance with the following resolution:

RESOLVED,

1.         That the Board of Finance recommends and approves the appropriation by the Town of Simsbury of TWO HUNDRED EIGHTY THOUSAND DOLLARS ($280,000) and the issue of bonds or notes and temporary notes in an amount not to exceed TWO HUNDRED EIGHTY THOUSAND DOLLARS ($280,000) to finance the appropriation for renovations and improvements to the hallway on the first floor of the Henry James Memorial School.  The appropriation may be spent for equipment, furnishings, materials, site improvements, legal fees, net temporary interest and other financing costs, and other expenses related to the project and it’s financing.  The Board of Education may determine the particulars, and may reduce or modify the scope of the project, and the entire appropriation may be spent on the reduced or modified project.

2.         That proceeds of the Town of Simsbury General Obligation Bonds, Issue of 2012 in an amount not to exceed $280,000 shall be reallocated to finance the appropriation, and the amount of bonds, notes and temporary notes authorized shall be reduced by the amount of bond proceeds so reallocated.

3.         That any additional bonds or notes issued pursuant to this resolution shall be issued pursuant to Sections 7-369 and 10-289 of the General Statutes of Connecticut, Revision of 1958, as amended, and any other enabling acts.  The bonds or notes shall be general obligations of the Town secured by the irrevocable pledge of the full faith and credit of the Town.  The term of the bonds or notes shall not exceed ten years. 

4.         That any temporary notes issued from time to time pursuant to this resolution in anticipation of the receipt of the proceeds from the sale of the bonds or notes for the project shall be issued pursuant to Sections 7-378 and 10-289a of the General Statutes of Connecticut, Revision of 1958, as amended.  The notes shall be general obligations of the Town and shall be secured by the irrevocable pledge of the full faith and credit of the Town.  The Town shall comply with the provisions of Section 7-378a of the General Statutes with respect to any notes that do not mature within the time permitted by said Section 7-378.

5.         That the First Selectman and the Treasurer of the Town shall sign any bonds or notes by their manual or facsimile signatures.  The law firm of Day Pitney LLP is designated as bond counsel to approve the legality of the bonds or notes.  The First Selectman and the Treasurer are authorized to determine the amounts, dates, interest rates, maturities, redemption provisions, form and other details of the bonds or notes; to designate one or more banks or trust companies to be certifying bank, registrar, transfer agent and paying agent for the bonds or notes; to provide for the keeping of a record of the bonds or notes; to designate a financial advisor to the Town in connection with the sale of the bonds or

            notes; to sell the bonds or notes at public or private sale; to deliver the bonds or notes; and to perform all other acts which are necessary or appropriate to issue the bonds or notes.

6.         That the Town hereby declares its official intent under Federal Income Tax Regulation Section 1.150-2 that project costs may be paid from temporary advances of available funds and that the Town reasonably expects to reimburse any such advances from the proceeds of borrowings in an aggregate principal amount not in excess of the amount of borrowing authorized above for the project.  The First Selectman and the Treasurer are authorized to amend such declaration of official intent as they deem necessary or advisable and to bind the Town pursuant to such representations and covenants as they deem necessary or advisable in order to maintain the continued exemption from federal income taxation of interest on the bonds or notes authorized by this resolution, if issued on a tax-exempt basis, including covenants to pay rebates of investment earnings to the United States in future years.

7.         That the First Selectman and the Treasurer are authorized to make representations and enter into written agreements for the benefit of holders of the bonds or notes to provide secondary market disclosure information, which agreements may include such terms as they deem advisable or appropriate in order to comply with applicable laws or rules pertaining to the sale or purchase of such bonds or notes.

That the Board of Selectmen, the First Selectman , the Treasurer and other proper officers of the Town are authorized to take all other action which is necessary or desirable to complete the project and to issue bonds, notes or other obligations to finance the aforesaid appropriation.

The resolution was approved by 5 votes in favor and 1vote opposed.  (Ms. Schofield voted against.)

Other Business

No other business was discussed.

Discuss next meeting’s agenda

Discuss set of rules for voting for Board Chair and Vice Chair and what to do in the event of a tie.

Adjournment

Ms. Petitjean made a motion to adjourn the meeting at 7:30 p.m.  Mr. Blumenthal seconded the motion and it was passed unanimously.

Respectfully submitted,

____________________________________                        ______________________________

Peter Askham, Chairman                                                        Leslie Brigham, Commissions Clerk