Board of Finance Regular Meeting Minutes-9/15/15
CALL TO ORDER
Simsbury Board of Finance Chairman Peter Askham called the regular meeting of the Simsbury Board of Finance to order at 6:00 p.m. on Tuesday, September 15, 2015. The meeting was held in the main meeting room in the Simsbury Town Offices located at 933 Hopmeadow Street, Simsbury, CT. Also in attendance were the following board members: Barbara Petitjean, Nicholas Mason, Jeff Blumenthal. Others in attendance were: First Selectman Lisa Heavner, Direct of Finance Joe Mancini, Simsbury Public Schools Business Manager Burke LaClair. Absent: Linda Schofield and Moira Wertheimer.
PLEDGE OF ALLEGIANCE
All stood for the Pledge of Allegiance.
MINUTES
Mr. Askham asked to push the approval of the July 21, 2015 minutes to the next Board meeting for approval. All Board members were okay with this.
FINANCE DIRECTORS REPORT
Town: Mr. Mancini reported that the Building Department fees are favorable $100,000. Investment return, recently Simsbury started investing with Morgan and Stanley, Mr. Mancini has two numbers to report. First one being the original budget of $25,000 and it brought in $31,381. Second set of numbers is the Mark to Market, which are purchased CD’s that are marketable securities, we have $59,000 of headwind there. There is about $440,000 that the Board of Finance can allocate out.
Mr. Askham believes that a third of the re-evaluation fund be put away. Mr. Mancini will get the numbers from Mr. Gardner, so the Board knows how much a third is.
Mr. Mancini reported for Fiscal 2016, tax collection, assuming the same rate $600,000. State grants ECS went up $20,000 more than what was budgeted due to Legislature acted after the Board had already voted, for the town of Simsbury. Expenses going into the year all look good.
Mr. Mancini reported for Fiscal 2017, (this is unofficial), changes from the Legislature reducing the sales tax by 1%, 50% is going to the towns and the other 50% to road improvement.
Board of Education: Mr. La Clair handed out a report regarding the Fiscal year end and some of the special projects, which Mr. Askham had asked about. The Board of Education is happy to report their meeting of the targets in funding of the non-lapsing account of $639,000. This money will be funded for the energy efficiency projects at Simsbury High School, Henry James, and Tootin’ Hills, which were completed largely over the summer. Out of that funding $249,000 will go to special education out of district tuitions and $702 unexpended funds to the public and non-public. Mr. LaClair also reported that with the two school renovations at Henry James and Squadron Line, they are under budget for both project, and will be looking for a partial reimbursement. Finally, Mr. LaClair reported the preliminary enrollment number is 4,140 students, the official number will not be available till October 1, 2015. Enrollment looks to be down 77 students in the next year.
BUDGET GOALS FOR FISCAL 2017
Mr. Askham reported that the budget goals for the last two years included, lower flat mill rate and maintain AAA rating, are these goals we want going forward. The goals would also include long range planning regarding The Hartford in case there is loss of revenue. Debt Service under 7% is always a goal, Mr. Askham would like to see the Debt Service go down to 5% and the Capital stay the same. The Debt Service policy needs to dusted off and updated in the next couple of months, seeing how it was written 20 years ago. Simsbury Farms stability doesn’t need to stay on for a goal seeing how they are stable again. Mr. Askham thinks the Water Pollution Control needs to be the next target, to see their Water Pollution Control in and see their long range plan for their capital, rates and reserves. Long term fiscal discipline is something that needs to be maintained and a goal to stick with. Excess fund balance to help lower taxes, is a goal that needs to be maintained as well. Mr. Askham believes Long Range Planning needs to be a goal for this year between all three Boards.
CAPITAL AVAILABILITY
Mr. Askham gave the Board the Debt Policy, 5 Year Capital Plan and Ratings Report for their information. At the Tri-Board meeting these areas will be discussed.
Mr. Mason asked Mr. LaClair if the Board of Education has Henry James Middle School renovation as a key item in next year’s Capital, which it is, and it is a big number.
Mr. Mason noticed that the Debt Policy does not include the two year rules and needs to be added to the existing Debt Policy.
CAPITAL NON-RECURRING
Mr. Askham handed out a schedule of what people have spent in the past, for everyone’s information. Mr. Askham would like to keep the numbers consistent with the past, and if they need more it can always come from Fund Balance, but would rather not.
Mr. Mancini reported that the way the Board hits the General Fund for CNR is by a five year rolling average. Any number in aggregate over $885,000 will make the budget increase by a fifth.
Mr. Mason would like to discuss at the Tri-Board meeting the aggregate number. His understanding it’s $1,000,000 and is that really an adequate number. Mr. Mason would also like to look at increasing the CNR budget at the Tri-Board meeting.
LONG RANGE PLANNING
Mr. Askham stated that the Board of Finance is going to commit to this as a goal and is currently in an organizational stage. The Long Range Planning will be formed as a permanent sitting Board, which will be a subcommittee of the Board of Finance, composed with member of the Board of Finance, Board of Education and Board of Selectman.
SAVINGS IDEAS
Mr. Askham stated that Linda handed out the savings ideas, which will be discussed at the Tri-Board meeting on Tuesday, October 6, 2015.
OTHER BUSINESS
There was no other business discussed.
ADJOURN
Mrs. Petitjean made a motion to adjourn at 7:15 p.m. Mr. Blumenthal seconded the motion. All were in favor, the motion passed unanimously.