TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING MINUTES
FEBRUARY 10, 2009
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, and Frederick Moffa, O.D.
OTHER ATTENDEES: William F. Smith, Jr., Town Manager; Barbarajean Scibelli, Administration Finance Officer; J. Cal Heminway, BOE Chairman; Alan Addley, Superintendent of Schools; Harry Traver, BOE Business Manager; and Joseph Kask, Principal Partner Auditor Blum Shapiro & Company, P.C., Certified Public Accountants
The meeting of the Board of Finance was called to order by Chairman Michael Guarco at 7:30 p.m.
MINUTES
The Board reviewed the minutes of December 22, 2008.
On a MOTION by Gordon Bischoff, seconded by Francis Brady, the Board voted (4-0-0) to approve the minutes of December 22, 2008 as presented.
PUBLIC COMMENT ON TENTATIVE GUIDELINES FOR 2009-10 BUDGET
Chairman Guarco gave an overview of the budget guidelines process. He indicated that at the December meeting a tentative budget guideline of 2% for the operating budgets for both boards was given. Chairman Guarco then asked if there was any public comment and a 3 minute limit was requested to individuals who wanted to comment.
Wayne Schremmer, 11 Morningside Drive, made the following comments:
- Asked the Board of Finance to look at the budget and get creative to reduce the mill rate, and also review growth to be sure things are still getting done.
- The budget has been creeping up with increases every year, and he wants cutbacks this year.
Robert Francolini, 30 Greenwoods Road, made the following comments:
- He passed out a typed document outlining his thoughts for curtailing the expenditures in the budget.
- He requested the Board do something to be able to apply to the FY 2009-10 budget that would help relieve the residents with their tax bill.
John Jenkins, 62 Lost Acres Road, made the following comments:
- He passed out a written document outlining his questions and suggestions for the FY 2009-10 budget.
- He commented that raises for town and school employees cannot be afforded in the FY 2009-10 budget.
- He suggested cuts to some town and school salaries.
PRESENTATION OF JUNE 30, 2008 AUDITOR REPORT
Joseph Kask, Blum Sharpiro & Company, PC., presented the following documents: Comprehensive Annual Financial Report (CAFR), State Single Audit Report, Federal Single Audit Report, and an Independent Auditor’s Letter in accordance with auditing standards. He reported the letter provides a clean opinion for the Town of Granby.
Mr. Kask spoke on the following pages from the CAFR:
- Page 16 - Statement of Net Assets; one of the items highlighted was the unrestricted line item in the amount of $11,175,749. Mr. Kask indicated that over time a comparison of this table with others town will be available and may be of interest.
- Page 17 - Statement of Activities; shows the net expenses for all town activities.
- Page 18 – Balance Sheet – Government Funds; shows the total fund balance for “General” in the amount of $5,693,38 and on page 50 gives a detailed report of the “General Fund”.
- Page 20 – Governmental Funds; shows the net changes in fund balances and the changes from the beginning of the year.
- Page 23 – Proprietary Fund; shows net assets increasing at end of year relating to health benefits. He commented other towns have not experienced the same.
- Page 26 – Fiduciary Funds Statement of Changes in Plan Net Assets Pension Trust Fund; shows a net decrease.
Mr. Kask stated that the Governmental Accounting Standards Board (GASB) 43 and 45 will be in effect next year for auditing purposes.
A question was asked about the closing of Kelly Lane and Wells Road School projects and what amount would be returned to the town once the projects are closed. Town Manager Smith responded that about one-half of the remaining amounts would be returned ($80,000 - $100,000). It was commented that the Communications Fund revenues are coming in less than previous years because tower rentals have been consolidated between companies.
The table on page 57 “Nonmajor Governmental Funds” was discussed, the topics included were balances and uses of Town Aid Road, LOCIP, Solid Waste, and Sewer Utility Funds. Town Manager Smith noted that the purpose of the Solid Waste account is for reserves for landfill closing, volatility of the Connecticut Resources Recovery Authority (CRRA) tip fee, electronic recycling, household hazardous waste, options for when CRRA closes operations in 2012, and possible contamination issues. Other project funds Trail Link and COPS Secure our Schools are close to completion.
In response to a question by Chairman Guarco, Mr. Kask indicated the difference between the town fund balance report and audit fund balance report was how encumbrances are reported. The town uses year end results and the audit report details the liquidated amounts from the previous year.
STATEMENT OF ACCOUNTS
Barbarajean Scibelli commented the December report is being used for FY 2009-10 budget preparation for six-month activity. She then reported on the January Town Budget Operations Report. The revenues and expenditures are on track. She indicated that current year taxes collected is as expected. Prior years’ taxes are higher than expected which will assist the shortfall in motor vehicle supplement.
Mrs. Scibelli reported the General Maintenance account is expected to need an appropriation or transfer because of snow removal activity. Public Works has cleaned a number of storms this winter so far, with a majority of them on weekends and holidays and additional salt purchases were necessary because of the snowstorms.
Harry Traver, BOE Business Manager, reported on the Board of Education Financial Statement for January 2009. He indicated the Board of Education estimate for returning money to the town at year end is $142,000, before Special Excess Cost appropriation. Mr. Traver mentioned there were a number of favorable accounts in the report. They are: Certified Salaries, Teaching Assistant Salaries, Electricity, and Fuel. Mr. Traver indicated that Kelly Lane School is looking into replacing the playscape at an approximate cost of $40,000.
CONSIDERATION OF APPPROPRIATION REQUEST FOR FUNDING TOWN AND BOARD OF EDUCATION ACCOUNTING SOFTWARE
Town Manager Smith briefly outlined previous discussions regarding town and school finance software purchase. Town Manager Smith indicated that with the present economy, it may be better to borrow the money instead of paying outright. The Board felt that paying cash was still the way to go.
On a MOTION by Francis Brady, seconded by Gordon Bischoff, the Board voted unanimously (4-0-0) to appropriate an amount of $121,000 from the General Fund into the Capital Equipment Improvement Fund for the purpose of acquiring the finance accounting software as described in the memorandum dated February 10, 2009.
BUDGET GUIDELINES DISCUSSION
Town Manager Smith responded to a question from Chairman Guarco that the Grand List may not catch ½ percent increase. A contributing reason for the non-growth is little real estate growth and the lack of new motor vehicle purchases. Thinking conservatively, Grand List growth should be considered flat at this time.
It was commented that the Governor’s budget on behalf of the town and school was proposed at a slight decrease of approximately $65,000.
A discussion ensued by the Board regarding the finalization of budget guidelines. The Board concurred given the economic down turn, the school and town will need to hold the expenditure line items as low as possible, with a goal striving for 2% increases in operating budgets and no more than a 2% mill rate increase.
On a MOTION by Francis Brady, seconded by Gordon Bischoff, the Board unanimously (4-0-0) confirmed that budget guidelines set by this Board for each operating board is not to exceed 2% operating budgets for FY 2009-10.
CONFIRM DATE OF NEXT MEETING
Workshop coverage for the budget discussions for the town and school will be decided via E-mail by the Board of Finance.
The Board of Finance regular meetings of February 23, 2009 and March 23, 2009 are tentatively cancelled. The next special meeting of the Board of Finance is Monday, March 30, 2009. The proposed agenda is the presentation of the operating budgets for the town and school.
ADJOURNMENT
On a MOTION by Francis Brady, seconded by Frederick Moffa, O.D., the Board voted unanimously (4-0-0) to adjourn the meeting at 9:06 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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