Board of Finance Minutes-6/18/13

BOARD OF FINANCE
REGULAR MEETING - 6:00 PM
JUNE 18, 2013

CALL TO ORDER

Mr. Paul Henault, Chairman called the Regular Meeting of the Board of Finance to order at 6:00 P.M. on Tuesday, June 18, 2013 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, Peter Askham and Nick Mason.  Also present were Mary Ann Harris, Finance Director; Burke LaClair, Board of Education Business Manager; Gerry Toner, Director of Culture, Parks & Recreation, and other interested parties.
 

1. Approve Minutes

• May 14, 2013 – Regular Meeting

Mr. Mason moved for approval of the May 14, 2013 Board of Finance meeting minutes, as presented. The motion was seconded by Ms. Petitjean and was unanimously approved, with one (1) abstention.

Ms. Petitjean moved to address item #3 on the Agenda at this point in the meeting. The motion was seconded by Mr. Blumenthal and was unanimously approved.

3. Simsbury Farms Presentation

Mr. Toner passed out copies of his presentation to the Board members and then proceeded to walk through the packet titled "Simsbury Culture, Parks and Recreation Department". He also handed out a packet outlining the summer programs offered and the costs related. Mr. Toner's presentation covered topics such as Mission Statement, Major Areas of Responsibility, Program Information, Special Revenue Fund Summary, Aquatic Revenue Report, Golf Course Marketing Plan, Golf Course Annual Income and Activity, Vehicle Inventory and lastly, an overview of the Special Revenue Fund.  Mr. Toner answered questions posed by the Board members throughout his presentation. Mr. Toner spoke specifically about the utility savings as a result of the recent updates to the facilities, usage numbers and future rate increases. The expected deficit was discussed. The revenues and expenses of the golf course were discussed further in terms of true cost of the course to the Town.  David Bush, Chairman of the Department of Parks and Recreation Board, spoke briefly about non-resident play at the golf course, marketing and comparable rates in the area.  Gerry Wetjen, Golf Course Superintendent, spoke briefly about the projected numbers regarding golf course play in 2013. It was suggested that Simsbury Culture, Parks and Recreation Department compile a 5-year business plan to show the long-term plan. Golf course rates were discussed further.

4. OPEB Discussion and Possible Action

Mr. Askham said there are reserves that are not being utilized (in this low-interest rate environment) and said these funds might be better utilized if redirected towards the OPEB fund, which currently maintains a deficit. He spoke about redirecting those funds and how it could be accomplished. Ms. Harris reviewed the feedback she has received from the auditors on this topic. The potential transfer amount was discussed between the Board members and Ms. Harris. The necessary authorization in order to make this transfer happen was discussed. Mr. Henault noted that the Board still needs to consult with the Board of Selectmen and Board of Education, as well as discuss with Town Attorney, on who can authorize this transaction. Then, he continued, Board of Finance can come back in July and make a formal recommendation.  Mr. Mason suggested that BlumShapiro and Bob Lindburg, consultant, also give their blessing on this type of transaction.

5. Request for TRANSFER from reserves for Capital Non-Recurring Fund

Mr. Henault provided an overview on this transfer. The account balances were discussed further.

Ms. Petitjean made a motion to approve the transfer, in the amount of $400,000, from the general reserve fund to increase the Fund Balance in the Capital Non-Recurring Fund.  Mr. Mason seconded the motion which was unanimously approved.

2. Discussion on Reserves

The Board members asked Ms. Harris questions regarding the Estimated Fund Balance as of May 31, 2013, a sheet on which was distributed to the Board Members.  The idea of allocating funds towards the Pension Fund was discussed. Allocation of those funds were discussed. After discussing the current security contract amount, Mr. Burke reminded everyone of additional security related costs that will be coming up. Ms. Harris referenced a June 30, 2013 memo titled, "June 30, 2013 Reserves" and discussed the numbers further. The specific allocation of the $200,000 was discussed further.

Mr. Blumenthal moved that the Board of Finance make a recommendation to the Board of Selectmen to make a transfer from Reserves to the Pension Plan, allocation to be determined, in the amount of $200,000. Ms. Petitjean seconded the motion which was unanimously approved.

Mr. Mason made a motion to adjourn the June 18, 2013 regular meeting of the Board of Finance at 8:39PM. The motion was seconded by Ms. Petitjean which was unanimously approved.

Respectfully submitted,

____________________________________  ______________________________
Paul Henault, Chairman     Leslie U. Faraci, Commissions Clerk