TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING MINUTES
JANUARY 4, 2007
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Frederick Moffa, OD; and Al Wilke Francis Brady arrived late.
Also present: William F. Smith, Jr., Town Manager; Barbarajean Scibelli, Finance Officer; Joseph Kask; Scully & Wolf, LLP, Certified Public Accountants; David Almon, Scully & Wolf, LLP, Certified Public Accountants; Gwen Van Dorp, Superintendent of Schools, Harry Traver, BOE Business Manager; and J. Cal Heminway, BOE Chairman
Chairman Guarco called the meeting to order at 7:08 p.m.
MINUTES
The Board reviewed the minutes for the meeting of October 23, 2006 before taking action.
On a MOTION by Al Wilke, seconded by Frederick Moffa, to approve minutes of October 23, 2006, the Board voted (3-0-1) to approve. Mr. Bischoff abstained.
AUDITORS REPORT – 2005- 2006
Mr. Kask introduced himself and his associate, David Almon. Mr. Kask reported that Town Manager Smith requested that appropriate steps be taken to strive for a Certificate of Achievement for Excellence in Financial Reporting given by the Government Finance Office Association. The report has been expanded and is called Comprehensive Annual Financial Report. The report differs from past years by containing a detailed letter from the Town Manager describing the town’s fiscal activity for 2005-06, expanded statistical tables, and other miscellaneous exhibits. Mr. Kask indicated that 25 towns out of 45 have already received the special certificate and believes Granby will be another town.
He noted that there are no matters involving the internal control over financial reporting and its operation that would be considered material weaknesses. In Scully & Wolf’s opinion, the financial statements on behalf of the Town of Granby have conformed to the accounting principles for the year ending June 30, 2006. He gave highlight to Exhibits I, II, III, IV, V, VI, VII and pages 3, 15, 17, 18, 20, 23, 35, 48. He indicated in Exhibit I, the invested capital assets dollar figure of $31 billion includes buildings, furniture, and fixtures. This figure will increase once the infrastructure reporting of roads and streets are included for June 30, 2007. Under the Governmental Accounting Standards Board (GASB) No. 34, there is no appreciation value on town land and construction in progress projects. He also commented that the town and Board of Education have each separately developed systems and policies for reporting information required by GASB No. 34. However, Scully & Wolf
recommend implementing a single coordinated capital asset management system to cost-effectively manage and accurately report information necessary. The Board discussed the recommendation of implementing a single coordinated capital asset management system.
The auditor commented that GASB No. 43, starting July 1, 2007, will impact governmental entities that provide health insurance and other benefits to employees upon retirement. An analysis was done by Milliman for our use in establishing a comprehensive plan to address the various provisions and effects of the new postemployment standard.
Mr. Kask answered a question by Chairman Guarco about how unused project activity money falls back to General Fund once the project is deemed concluded. A discussion was held regarding schedule of payments for debt service, liability obligations, and pay as you go with the liability obligations.
GASB No. 40 became effective for fiscal year ended June 30, 2005. The new standard amended certain provisions of GASB No. 3 by adding additional disclosures, and eliminating others, that provide financial statement readers with an understanding of the government's deposit and investment risk status and policies. The statement focuses on five categories of risk: Custodial Credit Risk, Interest Rate Risk, Credit Risk, Concentration of Credit Risk, and Foreign Currency Risk. The recommendation is that the town update their formal written policies and procedures to expand the current documented and informal practices governing control over deposits and investments.
Chairman Guarco thanked Scully & Wolf, the administration, and staff for a job well done.
STATEMENTS OF ACCOUNTS
Harry Traver, BOE Business Manager, highlighted the BOE November Statement of Accounts. Mr. Traver indicated that the electricity and fuel budget is showing a favorable projection of approximately $40,000. This could change if winter conditions plummet downward from the recent above normal weather temperatures. A discussion was held regarding possible teacher retirements and severance projections for next fiscal year. It was noted that approximately 50% of current anticipated revenue from regular tuition from other towns was received in December and therefore not reflected in the November Statement of Accounts.
William F. Smith, Jr., Town Manager, reviewed the November Budget Operations Report. He indicated that tax collection and other revenues have been received as expected. Town Manager Smith reported on account 312 as receiving money for the Broad Hill Road Bridge project and snow storm reimbursements.
On the expenditure side, Public Works general maintenance is in good shape because of weather conditions. The Grand List information is not available and once it becomes available, it will be passed along.
CONSIDERATION OF APPROPRIATION REQUEST FOR SILVER STREET BRIDGE – DESIGN PHASE
The Board reviewed the memo from Town Manager Smith explaining the appropriation request in the amount of $260,000. This project activity was started a while ago and later found the bridge was in need of more repair than first anticipated. It was then placed on hold to be moved into the federal bridge program. The recommended funding sources are the state’s Local Capital Improvement Program (LoCIP) in the amount of $52,000 for the local share and the General Fund in the amount of $208,000 for the Federal share. The Federal share of $208,000 (80%) will be reimbursed to the town.
On a MOTION by Gordon Bischoff, seconded by Francis Brady, to approve the appropriation request from the General Fund in the amount of $208,000 and from LoCIP in the amount of $52,000 to the Bridge Program Fund for a total of $260,000 for the construction of replacing the Silver Street Bridge, the Board voted unanimously (5-0-0) to approve.
UPDATES – CONTRACT NEGOTIATIONS
The teachers contract was recently passed and the custodial and secretary contracts end June 30, 2007.
The International Brotherhood Police Officers (IBPO) and Granby Municipal Employee Association (GMEA) negotiations continue. It is hoped both contracts will conclude short of arbitration.
PLUS ONE BUDGET (2007-08)
Board of Education
Gwen Van Dorp, Superintendent of Schools, presented a summary of the Plus One Budget for the Board of Education. Some of the highlights were:
Overall increase for the FY 08 operating budget is approximately 6.8%
Includes one additional position for enrollment at the high school; 1% of the overall budget for new programs and program enhancements
Increase in legal account to adjust for trend
Cost of utilities have increased
New bus contract is projected for February 2007
No big enrollment spike is expected; the kindergarten is expected to decrease, but will plan on 8 more students
The high school senior class is the largest of record (200 students)
This year approximately 33 classes have 25 or more students enrolled; this will be addressed over a two-year period
A discussion was held on the subjects of increasing utility prices and the health savings account program effective July 2007. The Superintendent indicated that an approximately 6% budget guideline may meet most of the school’s needs.
Board of Selectmen
Town Manager Smith reported on the Plus One Budget for the town. He indicated the Plus One Budget is primarily for the operational portion of the budget. This would include approximately 4% in salary and wages, a contract obligation with Lost Acres Fire Department, staff additions (clerical support to keep offices open, library staff, and town clerk and revenue collection staffing), oil, electricity, and equipment maintenance (gasoline, diesel, and parts) increases, and snow and ice control costs. The Plus One Budget represents approximately a 6% increase in the overall operation budget.
Mr. Smith indicated this increase to the budget would address public service needs as a result of the growth of the town and turnovers and illnesses with the Police Department. A discussion was held about the Police Department’s staffing and its affect to their continued accreditation recognition, the difficulty of retaining police officers, and the shortfall of staff because of absences by police officers on sick leave.
PRELIMINARY DISCUSSION OF BUDGET GUIDELINES FOR 2007-08
Chairman Guarco commented the Board will be striving for less than a 4% mill rate increase to the 2007-08 budget. After a lengthy discussion, the Board’s opinion for a preliminary guideline would be to use a 5% increase to the operating budgets for the Board of Education and Board of Selectmen.
FINANCE BOARD COMMITTEE UPDATES
Gordon Bischoff, as Chairman of the Capital Program Priority Advisory Committee, reported on the activity of a sub-committee looking into athletic fields and facilities study report. He distributed a draft memo regarding the sub-committee’s recommendations for the Board of Education’s request for a combined field house/maintenance facility and athletic field project and the Board of Selectmen’s request for public works storage addition. The recommendations are:
Appointment of a planning committee and development of a master plan for athletic fields and related facilities.
Development of common solutions for BOE/BOS storage needs.
Construction of a vehicle washing facility for the BOS/BOE that meets DEP requirements.
Realignment of maintenance and custodial functions to recognize core competencies.
Discussion highlights were: both boards are in need of more storage space; would the Department of Public Works wash bay accommodate busses and met the Department of Environmental Protection’s (DEP) stringent requirements; and possible use of outsourcing for the wash bay activity instead of internal control. Mr. Bischoff indicated the draft memo would move along for the Board of Education’s input and then to the Board of Selectmen for their review and discussion as an agenda item in the near future.
ON A MOTION by Francis Brady, seconded by Al Wilke, the Board voted unanimously (5-0-0) to adopt and endorse the recommendations as presented in the draft memo for the athletic fields and facilities study to the Board of Education and Board of Selectmen.
CONFIRM DATE OF NEXT MEETING
The next regular meeting of the Board of Finance will be February 12, 2007. The Three Board Meeting is scheduled for January 22, 2007 at 7:30 p.m. in Senior Center Community Room.
ADJOURNMENT
ON A MOTION by Al Wilke, seconded by Francis Brady, the Board voted unanimously (5-0-0) to adjourn the meeting at 9:50 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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