TOWN OF GRANBY
BOARD OF FINANCE MEETING
MINUTES OF JULY 27, 2009
PRESENT: Michael Guarco, Chairman; Francis Brady, Gordon Bischoff, Al Wilke, and Frederick Moffa, OD
OTHER ATTENDEES: William F. Smith, Town Manager; Alan Addley, Superintendent of Schools; and Harry Traver, BOE Business Manager
Board of Finance Chairman Guarco confirmed that a quorum was present and called the meeting to order at 7:30 p.m.
MINUTES
The Board reviewed the meeting minutes of June 22, 2009.
ON A MOTION by A. Wilke, seconded by F. Brady, the Board voted unanimously (5-0-0) to approve the meeting minutes of June 22, 2009.
DISCUSSION OF BOARD OF FINANCE BUDGET WORKSHEET FY 2010-Rev3
Chairman Guarco reviewed the information on the BOF Budget Worksheet FY10-Rev3 (attached), including the budget increases and decreases over the next several years for the Board of Education and the Board of Selectmen. Debt Service, CNEF, ED Fund, and Small Cap were also reviewed. He stated revenue is relatively flat for the upcoming year and varies up and down slightly over the next several years. Mill rate changes were mentioned, as well as modest increases and a decrease in Intergovernmental Revenue. He stated debt revenue would disappear as bonds are paid off. The use of funds from the General Fund could cause it to drop below 5% and should be watched.
Chairman Guarco asked if the Board had any questions or comments. G. Bischoff stated this worksheet gives a good glimpse of the big picture, with parameters of what the Board needs to work on. He also asked about liability regarding the OPEB budget impact and unfunded liabilities. Town Manager Smith stated the post employment benefits actuary report is updated every two years to determine contributions. Based on actuary results, we are on a “pay as you go” setup for retirees. The town has put a plan together for future funding for the next 30 years. Every year about $150,000 will be added in order to build up to the approximate $7 million needed. To start, the funds will be taken from reserves in place in the Health Benefit Fund. If funds are not available from here, then money
would need to come from the General Fund. F. Brady asked where the money for the Health Benefit Fund comes from. Town Manager Smith answered it comes from employees, employer, and interest on the account. A year with heavy claims can drain the account.
Chairman Guarco encouraged Board members to listen to residents regarding funding for the town. He’d like to know what residents are thinking about the budget. He also stated the town should hold on to cash reserves so that shortages can be dealt with.
Chairman Guarco noted that Board member B. Scott Kuhnly has resigned and has since been appointed to the Board of Selectmen. Robert Clark will be re-joining the Board of Finance to fill this vacancy through November 17, 2009.
CONSIDERATION OF BOARD OF EDUCATION APPROPRIATION REQUESTS
On July 20, 2009 the Board of Selectmen reviewed and approved the request from the Board of Education to appropriate an amount of $46,566 for Special Education Excess Cost and State Agency Placement Grant. Also approved was a request for a transfer of $136,315 from the Board of Education 2008-09 expenditures to the Capital Equipment/Improvement Funds for 2009-10 and beyond for improvements at the High School to comply with corrections needed under Title IX of the Civil Rights Act.
ON A MOTION by F. Brady, seconded by G. Bischoff, the Board voted unanimously (5-0-0) to appropriate the amount of $46,566 from the General Fund to the Board of Education 2008-09 budget for Special Education Excess funds.
ON A MOTION by A. Wilke, seconded by F. Moffa, the Board voted unanimously (5-0-0) to transfer $136,315 from the Board of Education 2008-09 expenditures to the Capital Equipment/Improvement Fund for 2009-10 and beyond.
F. Brady asked how many funds are in Small Cap. Town Manager Smith stated there are two, the Board of Education and the Board of Selectmen. This Board of Education money will be set up as a subcategory under the Board of Education for Title IX compliance.
PRELIMINARY SURPLUS AND FUND BALANCE ANALYSIS UPDATE
Town Manager Smith reported we are at a 7% fund balance (see attached Preliminary Estimate for 7/23/09). The town is still waiting to see what the state will do with the state budget.
Chairman Guarco asked about taxes paid to date. Mr. Smith did not have that number available. Mr. Guarco asked about the Elderly Tax Relief program and if there were more residents involved this year than last. He also asked if there is a noticeable rise in foreclosures compared to last year. Mr. Smith will obtain this information for Chairman Guarco.
Chairman Guarco noted guests in attendance and asked if any of them wished to speak. Bill Regan, a GCTV representative asked how the necessary Title IX corrections came to light. Harry Traver responded, saying it started as a state audit, then an audit of the high school and at that time several issues came to light that needed addressing.
ADJOURNMENT
The next regular meeting is scheduled for August 24, 2009 at 7:30 p.m. in the Police Department Community Room.
ON A MOTION by F. Brady, seconded by G. Bischoff, the Board voted unanimously (5-0-0) to adjourn the meeting at 8:30 p.m.
Respectfully submitted,
Susan Christian
Acting Recording Secretary
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