TOWN OF GRANBY
BOARD OF FINANCE
MINUTES
JANUARY 9, 2006
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, and Al Wilke.
Also present: Barbarajean Scibelli, Finance Officer; Gwen Van Dorp, Supt. of Schools, and Harry Traver, BOE Business Manager; Cal Heminway, BOE Chairman
Board of Finance Chairman Guarco called the meeting to order at 7:30 p.m. There was no quorum present; therefore these minutes represent discussions that took place.
MINUTES
No action could be taken on the minutes due to the lack of a quorum. The minutes will be on the agenda for the next meeting.
STATEMENTS OF ACCOUNTS
Harry Traver, BOE Business Manager, highlighted the BOE December Statement of Accounts. Mr. Traver indicated that the budget is showing a deficit of approximately $44,000, because of regular education certified salaries, electricity, and fuel. The special education budget shows a surplus of about $48,600. This could be change if a special ed need comes up. Currently there is a freeze on some accounts to keep an eye on spending.
Chairman Guarco asked the BOE for their information regarding their retirement analysis. They will forward it to the Board. Superintendent Van Dorp indicated that with the severance fund the BOE may avoid major spikes or reductions as their employees retire over the next few years.
A discussion was held regarding the possibility of signing a five-year contract for electricity beginning in January 2007 since Connecticut Light & Power (CL&P) announced their increase in electricity cost. Mr. Traver will receive more information about this on January 19, 2006.
The BOS December Budget Operations Report was not available. Mrs. Scibelli indicated the past couple of winter storms occurred on holidays or weekends resulting in higher costs for snow removal and the overtime budget will be monitored.
PRELIMINARY REVIEW OF FY 2007 BUDGET AND GUIDELINES
Chairman Guarco commented on a few items which were not available at this time. They are: grand list growth, health benefit increases, and governor’s budget. Once this information is known the Board would then meet and focus on operating budget guidelines. Fiscal Year 2007 Budget Worksheets Rev1 and Rev2 were distributed for review. The Rev1 shows the operating budget increase at 4% for the Board of Selectmen and Board of Education. The Rev2 shows the operating budget increase at 5% for both boards. BOE Chairman Heminway commented that a 5% increase to the Board of Education budget would not meet a maintenance style of budget for them. The budget guidelines should provide as many components as possible for establishing FY 2007 budget.
The Board members concurred that they would like to see the mill rate increase be in the range of 4%, the utility expense adjustments in January 2006 will begin to show the shortfall in both of the operating budgets, the General Fund status will need to be reviewed, and obtaining more information is necessary before guidelines can be proposed.
Other issues discussed were health benefits with plan design changes and premium share changes. The Board of Finance encouraged cooperation between the boards such as the electricity contract.
AUDITORS RFP
A dialogue was held regarding RFP(s) for new auditors. It was commented that the Government Accounting Standards Board (GASB) rules create an important concern towards considering soliciting the services of qualified firms of certified public accounts to audit financial statements. A learning curve and other issues will result if a new auditing firm is considered before completion of GASB 34. Mrs. Scibelli indicated that some towns retain the same auditors for 10+ years. Some towns never change and others have charter requirements to change after only three years. The firm of Scully & Wolf has been engaged for about eight years.
This discussion will be continued at the next meeting.
CONFIRM DATE OF NEXT MEETING
The next meeting of the Board of Finance will be February 13, 2006. A workshop may also be scheduled for February 13th beginning at 6:30 p.m.
ADJOURNMENT
The meeting closed at 8:24 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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