Board of Finance Regular Meeting Minutes-9/16/14
BOARD OF FINANCE
REGULAR MEETING – 6:00 PM
MINUTES
SEPTEMBER 16, 2014
CALL TO ORDER
Mr. Askham, Chairman, called the Regular Meeting of the Board of Finance to order at 6:00 P.M. on Tuesday, September 16, 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 Joseph Mancini, Director of Finance/Treasurer, Burke LaClair, Board of Education Business Manager, Leslie Brigham, Commissions Clerk and other interested parties.
Pledge of Allegiance
Everyone stood for the Pledge of Allegiance
Approve Minutes – August 19, 2014 Regular Meeting
Ms. Petitjean made a motion to approve the minutes as amended from the August 19, 2014 Regular Meeting. The motion was seconded by Ms. Wertheimer and was passed unanimously.
Investment Advisor presentation on benefit plans (DB plan, Pension and OPEB)
Mr. Christopher Kachmar, Chief Investment Officer, Fiduciary Investment Advisors, briefly explained the booklets distributed to the Board members. Items included in the booklet were:
Governance Checklist
Fiduciary Governance Calendar
Committee Best Practices Review
Asset Allocation – Town of Simsbury - as of September 8, 2014
Town of Simsbury OPEB Trust – Updated Balances
Historical Balances by Investment – as of June 30, 2014
Also included with the booklets were:
Town of Simsbury Defined Benefit Pension Plans Investment Policy Statement – November 2012
Town of Simsbury Retiree Health Care Trust Investment Policy Statement – September 2007
Town of Simsbury Defined Contribution Plans Investment Policy Statement - May 2014
Investment Policy
Mr. Mancini discussed and edited the Town of Simsbury’s Investment Policy document with the Board members. Mr. Kachmar stated that, in their estimation, the Policy covers all of the basic elements.
This will be discussed again at the next meeting.
Finance Director’s Report
Mr. Mancini reviewed the Report of the Director of Finance memo with the Board of Finance members. Items included in the memo were:
Update on Tax Collections and Grand List
Simsbury Farms Subcommittee
Estimated Reserves
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Operations Summary
Capital Projects
Utility Projects
Mr. Mancini discussed receiving permission from the Board of Finance to have Blum Shapiro perform a review of the accounting of the Capital Projects. Mr. Mancini noted that this will be at a cost of approximately $6,000 to $8,000. He also noted that it had been discussed to do some work with the Best Practices and other items. The total cost for all these items to be completed by Blum Shapiro would be approximately $20,000 for this fiscal year.
Mr. Askham noted that they officially cannot approve the $6,000 to $8,000 for Capital Projects at this time, but directed Mr. Mancini to complete this work and the Board of Finance will approve when legally allowed.
Mr. LaClair distributed a memo to the Board members from him to Mr. Mancini on Potential Energy Programs – School Buildings. He noted that the utility programs have provided incentives for efficiency programs and stated that they have participated in these programs in past years.
Mr. LaClair is requesting that the Board of Finance consider providing funding from reserves for the net cost of $229,418, which would allow the operating budget to take the full value of the estimated savings of $122,749 for the 2015-2016 budget year. Mr. Roy explained that CL&P has pushed this program and that there are approved vendors that CL&P offers, with Point Energy being one of those vendors. He then explained how this program would work for Simsbury.
Mr. Mason made a motion to amend the agenda to move item 8 - Open Space Request and Item 9 - Generator Project Request before item 7 - Reserve Policy. The motion was seconded by Ms. Petitjean and was passed unanimously.
Open Space Request
Mr. Mancini reviewed the memo from Thomas Cooke, Director of Administrative Services, for Open Space Matters with Board members requesting $464,000 to be placed in the Open Space Special Revenue Fund.
The memo noted that the Board of Selectmen authorized a transfer of funds from the General Fund for the following projects for a total of $49,000:
Ethel Walker consultant services:$33,000
Forest Management Plan Administration:$6,000
Park & Recreation Open Space Management Plan:$5,000
Bike Trail Maintenance Plan:$5,000
The Board of Selectmen also recognized an immediate need for funding in the amount of $25,000 to cover the cost of Park & Recreation Short Term Repairs.
The total request for funding is $74,000 to be taken out of reserves and transferred back into the budget.
Mr. Mason made a motion to approve the $74,000 described in the memo. The motion was seconded by Mr. Blumenthal and was passed 5 to 1. Ms. Petitjean voted against the motion and stated that she is not against doing this request; however, she is against it showing up outside the annual budgeting process that is approved at referendum by the voters.
Generator Project Request
Mr. Mancini discussed the memo from Thomas Cooke, Director of Administrative Services for the Emergency Generator Projects regarding the Board of Selectmen’s approval for the request of:
Authorization of a budget transfer in the amount of $70,000;
Appropriation of grant funds in the amount of $59,213 to be used exclusively for completion of the generator project for Tariffville School; and
Referral of these matters to the Board of Finance for approval.
Mr. Roy explained why the cost for this project has increased over what was already approved in the budget.
Ms. Wertheimer made a motion to authorize the budget transfer in the amount of $70,000. The motion was seconded by Mr. Blumenthal and was passed unanimously.
Ms. Petitjean made a motion to appropriate funds for Tariffville School in the amount of $59,213 which will be offset by grant funds. The motion was seconded by Mr. Mason and was passed unanimously.
Reserve Policy
Mr. Mancini reviewed and edited the Town of Simsbury General Fund Balance Policy, Updated for GASB54 Fund Balance Reporting and Governmental Type Definitions, Adopted by the Board of Finance on (Date) with the Board members.
Mr. Mancini will edit the document with suggested changes and the motion to approve has been tabled until the next meeting.
Open Space Rules
Mr. Mancini discussed the Open Space Fund Policy with the Board members. Items included:
Establishment of the Fund
Purposes of Fund
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Apportionment and allocation of Fund
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Sale of property
Mr. Blumenthal agreed to work with Mr. Mason on this document.
Board Rules – Frame Work
To be discussed at the next meeting.
Other Business
To be discussed at the next meeting.
Discuss next meeting’s agenda
A presentation from an insurance agent on the self-insurance fund.
Adjournment
Ms. Petitjean made a motion to adjourn the meeting at 7:30 p.m. The motion was seconded by Ms. Wertheimer and was unanimously approved.
Respectfully submitted,
Peter Askham, Chairman Leslie Brigham, Commissions Clerk