Board of Finance Regular Meeting Minutes-2/16/16
Town of Simsbury Board of Finance
REGULAR MEETING MINUTES
Tuesday, February 16, 2016 at 5:45PM
Simsbury Town Hall – Main Meeting Room
933 Hopmeadow Street, Simsbury, Connecticut
PRESENT: Linda Schofield, Moira Wertheimer, Robert Pomeroy, Jr., Kevin Prell, Jeff Blumenthal and Barbara Petitjean (via phone).
ABSENT: None.
1. CALL TO ORDER:
Acting Chairman Linda Schofield called the meeting to order at 5:45PM.
2. PLEDGE:
All present stood for the Pledge of Allegiance.
3. APPROVAL OF MINUTES - January 19, 2016:
The January 19, 2016 Minutes should be amended as follows:
First paragraph, Call to Order, the name “Pettijean” should read “Petitjean”; First paragraph, Call to Order, the name “Moria” should read “Moira”; and all questions marks should be removed.
MOTION: Ms. Moira Wertheimer, Mr. Jeff Blumenthal second, to approve the January 19, 2016 Minutes as amended; unanimously approved.
4. FINANCE DIRECTOR’S REPORT:
Finance Director Joseph Mancini was present to comment and respond to questions on his report. Mr. Mancini reported that this meeting would be his last as he is leaving his current position for one nearer to home. He reported that the Internal Service Fund for Fiscal Year 2016 is going to remain flat, but noted that the revenue side is showing incredible favorability with tax collection rates up from the budgeted 98.5% to 99.5%, noting that the one percent works out to be about $900K. Additionally, building permit fees are higher than the original anticipated amount, from $600K to $1.1M, largely driven by new condominiums, according to Mr. Mancini. He noted that this trend of permit fees being greater than $600K will likely be carried into next year. Mr. Mancini pointed out that ECS (estimated cost sharing) is still around $320K, noting the governor’s cut of $9,800 as well as this year’s cut of the pilot program.
Regarding the expenditure side, Mr. Mancini reported that his office is tracking four items that they are looking for appropriations on. He noted that one is the Simsbury PAC (Performing Arts Center) $15K purchase of a Cushman, an all-terrain vehicle used to move equipment around. He noted that this group has submitted a request through the capital non-recurring but reported that there is a desire to have the Cushman prior to the start of the fiscal year, noting the group is hoping to have them for May. Mr. Mancini reported that a second appropriation being sought is the Heart & Hypertension line, explaining that this is the third and final increment of $70K from the total approved settlement sum of $210K, of which the Board of Finance has already approved two increments of $70K each. Mr. Mancini noted that this would not be paid until December, 2016/January, 2017 but would encumber the amount to have in reserve. A third appropriation Mr. Mancini discussed are Planning Studies. Finally, Mr. Mancini reported that the planned reevaluation is likely to cost an estimated $270K, noting that $235K has already been approved and the final $35K is the last installment. Mr. Mancini then distributed copies of Simsbury Assessor David Gardner’s timeline for the next reevaluation, noting that the lengthy process is scheduled to begin in March. Mr. Mancini noted that while the hope is that the rates go up, current area trends are revealing dips, especially in municipalities with the highest priced homes.
Discussion ensued regarding the Cushman purchase and the reevaluation. Alternatives such as PAC renting one until the new fiscal year or limping along with the one they have currently were discussed but the Board noted that this will need to go before the Board of Selectman. Regarding the reevaluation, the Board agreed to invite Mr. Gardner to a future Finance meeting to discuss the process and share whatever issues he may foresee as well as to provide his thoughts on grand list growth.
Mr. Robert Pomeroy, Jr., noted that a review of the Board of Education’s second quarterly report revealed a good portion of favorable expenditures were energy related and questioned whether a similar impact can be seen as part of the Town budget. First Selectman Lisa Heavner explained that a lot of the town investments into energy savings are being paid for on bill, which results in the savings not being seen until three or four years out because they are paid for over time. Discussion followed regarding examining effects of paying for these early. Mr. Mancini noted that he will explore this.
Mr. Mancini reviewed the most recent estimated projections for state aid. He advised the Board to be cognizant of the municipal car tax figure of $1.3M as he is waiting for clarification from the CCM (Connecticut Conference of Municipalities) and the State as he believes a portion of this is the Fire Districts, noting that it is a separate entity and that the figure is $200K-$260K higher than what he expects it to be. Mr. Mancini also cautioned that Municipal Revenue Sharing is still on the block. In response to an inquiry from Ms. Schofield, Board of Education Business Manager Burke LaClair explained how Excess Cost Sharing grants have historically been figured into his board’s budget.
Mr. Mancini briefly reviewed highlights from the Comprehensive Annual Financial Report, noting that the auditors will be reviewing in greater detail at the March 15, 2016 meeting.
5. APPOINTMENT OF INTERIM FINANCE DIRECTOR:
Ms. Petitjean formally requested that prior to his departure, Mr. Mancini leave a memorandum, even with just bullet points delineating areas that the Board of Finance should keep as part of their focus. Ms. Heavner noted that from Connecticut Council of Small Towns meeting held earlier in the day, it is important that the 2.5% cap be a focus, as coming in with a budget higher than that cap can result in a reduction of state aid. Mr. Mancini noted that he does have ideas on how to stem this policy with one being to begin planning the full amount of the revenue as an expenditure. Ms. Schofield noted that one of the ideas proposed by the governor, however, is to eliminate the Department of Motor Vehicles as an enforcement mechanism for payment of municipal taxes which may result in revenue collection dipping.
MOTION: Mr. Blumenthal, Ms. Wertheimer second, subject to the approval of the Board of Selectman, that Sean Kimball be appointed on an interim basis as the Finance Director; unanimously approved.
6. BOARD OF EDUCATION UPDATE: Financial Report – 2nd Quarter.
Mr. LaClair had available for distribution a 2nd Quarter Report as well as a handout detailing the financial impact of the revisions of the federal government’s No Child Left Behind policy. He noted that revenues are still favorable from what was budgeted and although early in the schools fiscal year, the district is spending at a slightly slower rate than last year. He highlighted changes within the current year: an additional 1.05 FTE (full-time equivalent) non-certified support staff since the beginning of the school year as well as the district being in the process of hiring a .7 FTE preschool certified special education teacher. Mr. LaClair noted that these extra hires will be covered by savings derived from Insurance/Pension Group which came from a decrease in number of participants as well as a greater participation rates in the high deductible health plan. He noted that another area that has seen increased costs is the Special Education Transportation costs which is going to be covered by Operation of Plant account. Mr. Kevin Prell questioned the staffing comparison portion of the report, noting that last year’s budget had included an increase of FTEs, from 634 to 639. Ms. Schofield questioned the expenditure of $34K in the line for Community Services. Mr. LaClair noted that this expenditure figure represents the cost of staff, mostly custodial although some for technical, to open the buildings through rentals. He noted that journal entries are done at the end of the year to appropriately charge these to this line. Mr. LaClair also reported that the revenue from these rentals go directly back to the town.
Mr. LaClair briefly reviewed the highlights of the report regarding the No Child Left Behind Act, noting that testing will continue to occur and will therefore not result in changes in that regard. He also highlighted that teacher evaluations will continue to occur. Mr. LaClair concluded by noting that at this point, there is no clear fiscal impact due to the changes in the legislation.
7. Transfers:
a. Cushman.
The discussion was tabled until the Board of Selectman has reviewed and acted on this matter.
b. Heart & Hypertension.
Mr. Mancini reminded the Board that the Selectmen had already approved a settlement sum of $210K, with this being the third and final installment.
MOTION: Mr. Blumenthal, Ms. Wertheimer second, to approve an appropriation in the amount of $70,000 for Heart and Hypertension Funding; unanimously approved.
8. DISCUSS POLICIES:
A. Rules of Procedure.
Discussion occurred regarding a possible scenario of a tie vote during the election of a chairman and/or vice-chairman of the Board of Finance. It was noted that Connecticut General Statutes Section 7-342 lays out that the responsibility for settling a tie rests with the Board of Selectman. Discussion also occurred regarding how often these leadership positions should be chosen.
MOTION: Mr. Blumenthal, Mr. Pomeroy second, to amend the Rules of Procedure, adding to #9, “or by electronic means” and to include a mention on the front of document reading “Revised and Adopted on February 16, 2016” and approve the Rules of Procedure as amended; unanimously approved.
B. Capital Non-recurring Budget Savings Fund.
Ms. Schofield noted that Ms. Petitjean has agreed to draft revisions to the policy regarding Capital Non-recurring Budget Savings Fund. Ms. Schofield requested that Board members review this policy in the coming weeks, mark it up and forward suggestions to Ms. Petitjean.
C. Debt Policy.
Ms. Schofield noted that Mr. Mancini has agreed to work on an update of this policy and strongly urged fellow Board members to submit their suggestions for revisions quickly.
D. OPEB and Pension Policies.
Ms. Schofield noted that Mr. Pomeroy and Mr. Prell will work with the Pension subcommittee to revise these policies.
E. Update on Sale of Open Space & the policy.
Ms. Schofield explained that this is a proposed ordinance that comes from the Board of Selectman along with the Open Space Committee. The blurb containing “…any funds received from the sale of open space should be applied to the open space fund…” was discussed. It was agreed that Ms. Schofield would formally reply to the Selectmen with a correspondence indicating that the Board of Finance objects to this language because they believe that it is the responsibility of the Board of Finance to determine the appropriate use of funds and that it should be stricken from the ordinance. The recommendation will also include a suggested correction to eliminate the dangling modifier and instead use the following language, “…otherwise dispose of town owned real estate designated as open space.”
9. OTHER BUSINESS:
Subcommittee assignments were distributed.
10. ADJOURN:
MOTION: Mr. Blumenthal, Mr. Pomeroy second, to adjourn at 7:25PM; unanimously approved.
Respectfully submitted,
Pamela Colombie
Commission Clerk