TOWN OF GRANBY
BOARD OF FINANCE
MINUTES
FEBRUARY 17, 2006
PRESENT: Michael Guarco, Chairman; Al Wilke, Gordon Bischoff, Francis Brady, Frederick Moffa, OD, and B. Scott Kuhnly
Also present: William F. Smith, Jr., Town Manager and John Adams, First Selectman
Chairman Guarco stated there was a quorum and called the meeting to order at 7:00 p.m. He also welcomed Scott Kuhnly as a new member to the Board of Finance.
MINUTES
The Board reviewed the minutes for the meetings of December 12, 2005 and January 9, 2006 before taking action.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, to approve minutes of December 12, 2005, the Board voted (5-0-1) to approve the minutes. Mr. Kuhnly abstained.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, to approve minutes of January 9, 2006 that was for discussion only, the Board voted (3-0-3) to approve the minutes. Messrs. Kuhnly, Brady, and Dr. Moffa abstained.
STATEMENTS OF ACCOUNTS
Town Manager Smith reviewed the January Budget Operations Report. Responding to a question, Town Manager Smith indicated that Granby is a stable town concerning tax collections but, if Granby's commercial tax collection base were higher, the revenue source could be more likely to fluctuate. Revenues are on target. The Education Cost Sharing account received revenues during the month of January which will be reflected in the February report. Veterans Exempt GT, Misc – State, Elderly Tax Relief, Stated Owned Property, and Town Clerk revenue accounts have collected some excess money. Planning & Zoning revenues will be adjusted to show a withdrawn application permit fee.
On the expenditure side, communications and dispatch account may show an overage by the end of the year. He also indicated there may be an overage concern for the General Maintenance account if overtime costs for snow removal continues to occur on weekends or holidays. The Building Maintenance & Town Grounds account handling the heating fuel and electricity and Equipment Maintenance account for gas and diesel continues to be watched. Concerning these three accounts, transfers may be requested.
Town Manager Smith answered questions concerning risks for snow removal overtime, fuel, and electricity accounts, and mentioned a possibility of receiving a snow reimbursement from Federal Emergency Management Agency (FEMA) for the February 12, 2006 storm.
APPROPRIATION REQUEST FOR COSSITT LIBRARY REPAIRS
First Selectman Adams began the discussion regarding the Cossitt Library initial repairs of $62,000 and possible future cost of up to $200,000. The appropriation request of $62,000 will come from the General Fund to the newly established Building Improvement Fund for Cossitt Library improvements and repairs. It was indicated that there would be no dollar value impact on the town for the $62,000 since the money is coming from a Hartford Foundation grant and an insurance reimbursement claim. A dialogue was held on how this fund would handle future appropriations and grant requirements. Mr. Smith indicated that separate sub accounts within the fund would be established for tracking individual projects and the amounts earmarked for each project would come to the Board of Selectmen and Board of Finance for
appropriations as required. Because the projects are expected to extend beyond the fiscal year and the fact that there will be several projects, this funding method seemed most practical.
The Board of Finance took note of the above and indicated the possibility of holding a workshop to discuss town appropriations.
On a MOTION by Francis Brady, seconded by Al Wilke, to approve the appropriation request of $62,000 from the General Fund to the Building Improvement Fund for Cossitt Library repairs comprising of two components, the insurance proceeds of $27,000 and a Hartford Foundation grant in the amount of $35,000, the Board voted unanimously (6-0-0) to approve.
DISCUSSION OF BUDGET GUIDELINES FOR 2006-07
The Board of Finance discussed budget guidelines for 2006-07, including grand list, debt, state-aid, mill rate, and other data. A review was conducted of FY 07 Budget Worksheet Rev1 and Rev2. Town Manager Smith indicated that a 5% guideline is unlikely to sustain activities the town has in place. A 7% guideline would allow for increases in fuel, energy, utilities, and some growth requirements needed for the town.
By consensus, the Board indicated support for a 5% guideline for the Board of Selectmen and the Board of Education and an additional assist of $321K for new operating expenses for Board of Education. The Board also wants to keep the mill rate increase under 4%.
CONSIDERATION OF AUDITOR APPOINTMENT FOR FY 2006
The Board continued their previous discussion regarding engaging new auditors, the status of Government Accounting Standards Board (GASB) rules as it relates to year-end audits, and the deferral of soliciting the services of certified public accountants to audit financial statements. When asked, Town Manager Smith indicated that a review process of the auditor’s engagement is good.
The consensus of the Board was to retain the present audit firm for next year and possibly for up to two years. Consideration of selections for a new auditor will be reviewed again at a later time.
MISCELLANEOUS
The Board of Finance members held discussions assigning members to attend the budget workshops for:
Board of Education
· Al Wilke
Board of Selectmen
· Francis Brady, Frederick Moffa, OD, and B. Scott Kuhnly
Michael Guarco and Gordon Bischoff will be alternates if one of the members cannot attend a workshop.
CONFIRM DATE OF NEXT MEETING
The next regular meeting of March 13th may be cancelled. Budget presentations by the Board of Education and Board of Selectmen is scheduled for March 27, 2006 at 7:30 p.m. in the Senior Center Youth Services Community Room.
ADJOURNMENT
On a MOTION by Gordon Bischoff, seconded by Scott Kuhnly, the Board voted unanimously (6-0-0) to adjourn the meeting at 8:50 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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