TOWN OF GRANBY
BOARD OF FINANCE SPECIAL MEETING
MINUTES OF MAY 19, 2009
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, and B. Scott Kuhnly, and Al Wilke. Francis Brady arrived a little late. Frederick Moffa, OD; arrived late.
OTHER ATTENDEES: William F. Smith, Jr., Town Manager, Allan Addley, Superintendent of Schools; and Harry Traver, BOE Business Manager.
Board of Finance Chairman Guarco confirmed a quorum and called the meeting to order at 7:45 p.m.
MINUTES
The Board reviewed the minutes of March 30, 2009 special meeting, April 13, 2009 public hearing, April 13, 2009 special meeting, April 27, 2009 special meeting and May 5, 2009 special meeting.
ON A MOTION by Gordon Bischoff, seconded by B. Scott Kuhnly, the Board voted unanimously (4-0-0) to approve the March 30th special meeting minutes as presented.
ON A MOTION by Gordon Bischoff, seconded by B. Scott Kuhnly, the Board voted unanimously (4-0-0) to approve the April 13th public hearing as presented.
ON A MOTION by Gordon Bischoff, seconded by B. Scott Kuhnly, the Board voted unanimously (4-0-0) to approve the April 13th special meeting minutes as presented.
ON A MOTION by Gordon Bischoff, seconded by B. Scott Kuhnly, the Board voted unanimously (4-0-0) to approve the April 27th special meeting minutes as presented.
ON A MOTION by Gordon Bischoff, seconded by B. Scott Kuhnly, the Board voted unanimously (5-0-0) to approve the May 5th special meeting minutes as presented.
STATEMENTS OF ACCOUNTS
Town Manager Smith reported on Budget Operations for April 2009. He indicated that revenues are stable. The revenue account #306 (auto supplement) will not meet its anticipated amount of revenue. However, the Prior Years Taxes and Interest and Liens collected are above the expected budgeted amount. Town Manager Smith will confirm with the Board of the actual billed amount under the account #306. He indicated the funds for the Payment Granby Homes for Senior Citizens (GHSC) account were not budgeted this year, but after petitioning the legislature the town will be receiving $10,000 in that account.
Mr. Bischoff asked for a continual update on foreclosures happening in Granby. Town Manager Smith responded that there were approximately five foreclosures last year and this year, there has not been a lot of activity. The town has approximately three since January 2009. He will monitor and provide information to them from time to time.
On the local revenue side the revenues for account #375 (Miscellaneous) are for legal settlement, grant payment and miscellaneous donations.
Chairman Guarco requested the budget year end forecast be E-mailed to his members for their information and review. He commended the school and town for providing continual innovative ideas in generating savings or revenues for the budget.
Town Manager Smith indicated that the town may ask for rebalancing or transfers of funds in four accounts within the Department of Public Works, General Maintenance, Equipment Maintenance, Street Lights and Signalization, and Building Maintenance and Town Grounds, which is mostly due to winter storm activity this past year.
Harry Traver reported on the Board of Education April Statement of Accounts. There is an amount of $185,000 for the civil rights compliance review generated by an audit report completed last year. He stated that the next step will be to have attorneys look at this for a thorough legal review and challenge audit findings. The favorable forecast total is approximately $241,000, which includes allowance for the civil rights issue and excess cost appropriation.
CONSIDERATION OF APPOINTMENT OF AUDITOR
The Board discussed at length the pros and cons for engaging the same auditor year after year. Highlights of the discussion were:
- Same auditors tend to be engaged for approximately 10 years at a time with one town.
- It is good to know that Blum Shapiro changes their managers who do the audit on a routine basis. Perhaps the partner should also be changed.
- GASB standards are in place now, which was one of the reasons why we kept with the same auditors.
- To make a change in auditor firms a RFP must be created. Approximately a year is needed to complete this phase.
- It would not be practical to go out this year with an RFP for new auditors.
- Full funding must be provided for the OPEB (Other Post Employment Benefits) fund for the next 20 to 30 years. At this time using funds from the health account will be sufficient. If the town cannot meet the funding requirements, an assist from the General Fund would need to be realized.
- A copy of the summary analysis from Milliman will be distributed to the Board of Finance.
- The amount to fund OPEB is an ever changing number depending on investments and actuary evaluation for any given year.
The Board concurred they have concerns of having the same auditors for a long period of time. They feel it should be a matter of policy to go out and seek RFP from auditors after a certain number of years (5 to 10 years). This procedure would ensure the town a control in price and knowledge of auditors’ best practices.
Town Manager Smith emphasized his goal would be to hire auditors who will keep the town on track for receiving the Financial Excellence Award, which we received for the last two years.
ON A MOTION by Francis Brady, seconded by Al Wilke, the Board voted (6-0-0) to approve the engagement of the current firm Blum Shapiro for audit purposes of the town for FY 2008-2009. In their audit report a reference should be reflected to show best practices that would be helpful to the Town of Granby.
CONSIDERATOIN OF FISCAL YEAR 2010 BUDGET AND MILL RATE
Chairman Guarco stated the machine vote on May 18, 2009 passed the budget.
B. Scott Kuhnly made a MOTION to adopt the resolution as follows:
2009-2010 PROPOSED RESOLUTION FOR MILL RATE
WHEREAS The Town Meeting has adopted an Annual Budget for the 2009-2010 Fiscal Year on May 18, 2009, as proposed by the Board of Finance, and
WHEREAS This Budget includes appropriations from the General Fund, Dog Fund, Cossitt Library Fund, Local Capital Improvement Program Fund, Capital Equipment/Improvement Fund, Town Aid Road Fund, Sewer Utility Fund, Recreation Events Fund, Education Quality and Diversity Fund, and Other Funds, and
WHEREAS This Budget includes an expenditure amount for the Board of Selectmen of $13,849,856 and an expenditure amount for the Board of Education of $26,667,594 for a total Town Budget of $40,517,450, and
WHEREAS Anticipated revenues excluding taxes levied for the 2009-2010 Fiscal Year amount to $10,824,165,
NOW THEREFORE BE IT RESOLVED that the Board of Finance set a mill rate of 29.46 to raise an estimated $29,693,285 in property taxes for the 2009-2010 Fiscal Year.
Al Wilke, seconded the motion and the Board voted unanimously to approve (6-0-0).
The Board requested the school and town to E-mail the document outlining the particular adjustments to the budget. They also requested the mill rate calculation formula to be sent out and possibly an explanation of the formula at a later date. Other topics mentioned were the projects that have been placed on hold and taking advantage of the economic times to work on projects such as overlays of roads for better pricing now.
ADJOURNMENT
The next regular meeting is scheduled for June 22, 2009. Agenda topics are transfer of accounts, resident input from town budget referendum, and next fiscal year budget discussion.
ON A MOTION by B. Scott Kuhnly, seconded by Frederick Moffa, OD, the Board voted unanimously (6-0-0) to adjourn the meeting at 9:00 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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