TOWN OF GRANBY
BOARD OF FINANCE SPECIAL WORKSHOP MEETING
MINUTES OF APRIL 1, 2006
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, B. Scott Kuhnly, Frederick Moffa, OD; and Al Wilke
OTHER ATTENDEES: Barbarajean Scibelli, Finance Officer
Chairman Guarco confirmed a quorum and called the special workshop meeting to order at 8:31 a.m. The workshop meeting was scheduled to discuss the role and responsibilities of the Board of Finance in Granby.
Chairman Guarco stated that each town operates differently. Some past history on practices for the Board of Finance roles are Town Charter, Home Rule Statutes, and the 1933 legislative involvement with the Town of Bristol. Granby defines the Board of Finance in the "Charter". Some major points of responsibilities are:
Ø Board of Finance is the fiscal watchdog during the year.
Ø Annually designates an independent certified public accountant or firm to audit the books and accounts of the town. The audit is presented to the Board of Finance for information and review of the town's activities.
Ø Solicit budget proposals and review and package them for a public hearing.
Ø Establish the mill rate once the citizens of Granby approve the budget.
Granby's Board of Finance has expanded their responsibilities, which are not reflected in the Charter. In 1984 the Capital Program Priority Advisory Committee (CPPAC) was created which the Board of Finance utilizes as one of the tools for long-range planning, capital projects, and budget previews. CPPAC members consist of two persons from each Board of Selectmen, Board of Education, and Board of Finance, the Town Treasurer, and ex-officios (Town Manager, Superintendent of Schools). Board of Finance is considered a neutral member for deciding what projects gets done if controversy develops between the Board of Education and Board of Selectmen. A computer model planning and forecasting document was created in 1989, which the town has been using ever since.
Chairman Guarco spoke about his experiences through the fiscal consortium in finding out about different budget guidelines for other towns like Simsbury, Avon, and Farmington. Compensation in the budget is one of the major factors in establishing a mill rate. Other categories are usually flat in the budget.
Going forward from FY 07, the computer model is virtually at 8% for General Fund Balance. They discussed what impact residential versus commercial property has on budgets. It was stated that commercial business is important to the town, especially when years are prosperous and taxes are easily collectible. The percentage in Granby for commercial property is 8% and personal property is 92%. It was questioned whether there is a long-range plan on commercial growth and if the Board of Finance has a role to promote growth, make philosophical debates, look at revenue side of the budget, and discuss economic zone? It was noted that Planning and Zoning Commission determines the economic development for commercial growth. The Planning and Zoning Commission looks at what is achievable for the town and what lands
are available as commercial. An example would be going from 8% to 10% for build up of commercial property. It was stated that the Board of Finance perhaps should give an opinion or voice it for all to hear. Mr. Bischoff indicated members could encourage non-resident growth before the Planning & Zoning Commission. Hunt Glen, Stop & Shop, and the new development of rezoning in the area of Stop & Shop were given as examples of recent commercial and residential property.
It was noted that the renovations and new buildings at the high school and municipal complex projects strengthen the relationship with residents as town officials kept their word with this major capital project.
Board members discussed the good and bad of the creation and disbanding of the Intra Town Committee. Mr. Wilke felt that there is an interest for Board of Selectmen and Board of Education to share maintenance buildings or equipment. Mr. Wilke commented that the Board of Finance should encourage ownership of common property or equipment. Mr. Bischoff indicated that CPPAC may influence boards initially and the Board of Finance members should take the initiative in looking for efficiencies in the computer model when planning long-range purchases, such as common equipment. Also it was indicated that the Board of Selectmen and Board of Education have front-end problems for common ownership. They have responsibilities to themselves for providing best quality and quantity of operation services and complying with union
contracts. Ms. Scibelli affirmed that most times purchase are planned for at budget time and the Board of Finance would have this information. More questions could be brought up at budget time with staff members, Superintendent of Schools, and Town Manger. Chairman Guarco indicated the Board of Finance influences all budgets early on before the official presentations are made to them.
Board of Finance members indicated a strong opinion for 20% premium sharing for health benefits by municipal and education services. They will send out this message to boards and public.
When planning for special projects, all boards worked together in identifying, promoting, and then executing such projects. The Board of Finance has to hold to these special project commitments, just as the Board of Education and Board of Selectmen do, and in fact have found ways to establish mill rates below the suggested mill rate in the "Statement of Commitment".
Communication between boards is very important with the computer model and support of it. Board of Finance members talked about bringing in other boards (Park & Recreation and Planning & Zoning Commission) to hold an informational discussion.
They discussed the budget process outlines. The outline is set up in a calendar format so boards share communications on a scheduled basis. However, use of this guideline for sharing information at times doesn’t match the suggested calendar dates as the information is shared when it becomes available.
They discussed whether mill rates between towns can be used as a comparison. An example was Granby 34 – Avon 24. It was determined possibly; but there are different factors that effect mill rate and that needs to be considered when comparing. They are:
Ø Trash services included or not in the budget
Ø School kids (how many in one town vs. other town)
Ø Commercial base percentage
Ø Residential base factors different
Pamphlet for information to residents on budget – must be neutral – only facts.
The Board of Finance members showed a concern for using General Fund cash surplus because the General Fund should be kept at a balance of 10% to show financial stability.
The Town Charter outlines how the town operates and it supersedes any state statutes, however, the Charter does mention some state statutes.
The town has an insurance policy that provides legal defense for town officials and board members acting honestly to faithfully perform their duties.
The Board of Finance has a threshold on acting upon additional appropriation issues, which is 1.5% of the current levy each year.
Special Education Hold Harmless Exhibit document was specially created as costs can significantly impact the town.
In the budget process, the Board of Education identifies certain expenditures as built-ins. If new cases occur and funds cannot be found from within their budget, a special appropriation may be requested. The amount of reimbursement for the Special Education overage depends on whether it is a state or town placement.
The Board of Education proposed budget is 5% plus $130,000 for start-up costs at Kelly Lane Intermediate School. Some revenues for the Board of Education are the tuition from Hartland students and other revenues from the state. Town can recoup revenues if Special Education spending goes down. However, in past years when it went down, it was used for program integration instead.
It was discussed that possibly after budget season; another workshop would be scheduled to discuss the computer model only.
Mr. Kuhnly indicated that GFOA has a booklet on rules for elected roles. The Board felt that creating a binder to keep certain information or documents in one place was a good idea.
Some of the Board of Finance roles, but not in print are rumor control, keep a neutral position, and monitoring. It was noted if these roles are acted out informally a lot of matters are handled expeditiously and with good results. Using the formal manner tends to dominate and sometimes gets defensive.
The meeting was adjourned at 11:44 a.m.
Respectfully submitted,
Pat Chieski
Recording Secretary
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