TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING
NOVEMBER 23, 2009
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Robert Clark, Frederick Moffa, OD; and Al Wilke. Francis Brady arrived late at the meeting.
OTHER ATTENDEES: John Adams, First Selectman; William F. Smith, Jr., Town Manager; and Harry Traver, BOE Business Manager
Chairman Michael Guarco confirmed a quorum and called the meeting to order at 7:30 p.m. Chairman Guarco discussed adding organizational matters to the agenda.
ON A MOTION by Gordon Bischoff, seconded by Al Wilke, the Board voted unanimously (5-0-0) to add the subject “organizational matters” to the agenda and place the item for discussion after the minutes.
MINUTES
The Board reviewed the meeting minutes of September 28, 2009.
ON A MOTION by Gordon Bischoff, seconded by Frederick Moffa, OD, the Board voted (3-0-2) to approve the minutes as presented. Mr. Bischoff and Mr. Wilke abstained.
ORGANIZATIONAL MATTERS
Mr. Wilke recommended Michael Guarco as Chairman and Gordon Bischoff as Vice Chairman. No other names were submitted.
ON A MOTION by Al Wilke, seconded by Robert Clark, the Board voted unanimously (5-0-0) to appoint Michael Guarco as Chairman for the next term of this Board.
ON A MOTION by Al Wilke, seconded by Robert Clark, the Board voted unanimously (5-0-0) to appoint Gordon Bischoff as Vice Chairman for the next term of this Board.
STATEMENT OF ACCOUNTS
William F. Smith, Jr., Town Manager, reviewed the Budget Operations Report dated October 2009. It was noted that tax collections were similar to the collection rate from last year. The Miscellaneous Account received money ($89,667) from the state for the Silver Street Bridge Program, senior van, and surcharge of motor vehicle violations. On the local side, the miscellaneous revenues ($10,764) received were from a legal settlement, gun permits, and reimbursement from the Capitol Region Council of Governments for police traffic crash reconstruction. Also for short-term investment revenues, the town hopes it will measure up to the target level suggested or it will be made up from other excess revenues collected. The expenditures are tight and are expected to meet expectations. Mr. Smith commented the winter
season has been mild so far, which may help the budget.
Chairman Guarco asked about the recent notification that Cambridge House Restaurant paid their taxes. Town Manager Smith will look into whether this tax payment to the town is reflected in the October’s budget report.
Mr. Clark remarked the short-term investments target level appears to be high. Mr. Smith commented this account has not yet been adjusted for the amounts we have received thus far and this account is considered at risk. First Selectman Adams indicated short-term investments had been reduced from the previous year’s budget expectations by approximately $60,000 less.
In responding to Mr. Bischoff’s question about the number of foreclosures being filed with the town, Town Manager Smith commented that there were no dramatic changes from last year to this year. Town Manager Smith will provide cost information about the town’s new signs for Mr. Bischoff because residents were questioning the cost given the current economy climate. First Selectman Adams added that even though the new signs may have cost more than the previous signs (which were in bad repair), they have a longer amortized life and it was part of the capital budget last year. Mr. Wilke commented that the new signs were a complement to the town.
Harry Traver indicated that the October Statement of Accounts had no major matters that needed reporting. He stated the only significant change was the additional special education outplacement of $113,000, which was down to approximately $78,000.
Chairman Guarco pointed out how the town and school budget reports differ in reporting amounts SDE Excess Cost Reimbursement. Mr. Traver will review this matter with Mrs. Scibelli to get a better understanding of why the reports differ.
Mr. Traver stated that the school and town are in the process of setting up payroll on the new finance software program for the January 1st start date. He commented this would be a challenge and practice runs are being conducted now.
BOARD OF SELECTMEN PLUS ONE BUDGET AND DISCUSSION ON FY BUDGET GUIDELINES
Chairman Guarco commented he wished to combine these two agenda items as they relate closely to each other.
The Board of Finance was provided with the Board of Selectmen’s copy of the Plus One Budget (2009-10) as prepared by the Town Manager. Chairman Guarco indicated the Board of Education Plus One Budget would be ready for distribution soon. It was stated the BOF budget worksheet FY10-Rev3 shows basically the budget being flat and showing little or no growth to the grand list.
Per the Board of Selectmen’s instructions, Town Manager Smith reported on the Plus One Budget showing only the items needed to sustain present operations. He indicated that the zero budget increase for town operations from the BOF budget worksheet cannot meet the expectations of sustaining the present operation service levels.
First Selectman Adams commented union contracts will most likely not be in effect before the FY 2010-11 budget is adopted. Two unions have already agreed to a zero increase for FY 2009-10 and the third union is currently in mediation and is expected to be settled this fiscal year.
A general discussion ensued about the town health insurance premium for employees ranging from 10% - 15%. It was stated that town health insurance premiums were usually less than the school side because generally the salaries are not equivalent to each other.
First Selectman Adams commented that perhaps the town needs to look at a five-year plan with the third year being the hardest hit given that the state budget still has issues of concern which may effect municipalities’ budgets. He also indicated that recessions at the state level usually means an increase in local taxes and relief from state mandates have not been made even though past discussions indicated it would happen.
Chairman Guarco then asked if Mr. Traver would review the negotiated teachers contract as both parties ratified it. Mr. Traver indicated the teachers contract is a two-year contract with the first year having no plan design change and 0% wage increase and no step movement. The second year the premium cost will increase from 17% to 17.5% and a 2.85% wage increase including steps. Mr. Wilke who sat in on these negotiations commented the local unions are compelled to keep the same representations of negotiations with other teacher contracts in the state. The Board of Education and teachers worked hard to get the contract they ratified. Town Manager Smith commented the premium cost shares generally do not go up more than ½% per year and would loose trying for 1% in arbitration.
First Selectman Adams commented on the procedures for handling the ratification of the teachers contract. He asked that citizens watching this meeting come to the Board of Selectmen meeting on December 7th to express their opinions on the teachers contract so that the Board of Selectmen may make an informed decision to handling the teachers contract. This teachers contract ratification is a routine procedure that residents should already be aware of.
Mr. Bischoff agreed with First Selectman Adams in looking at a longer range for the budget and relaying this information to the residents because of state and local economy. Chairman Guarco indicated holding the budget flat using a zero increase in operations realistically cannot be done unless residents want to see an erosion of services.
Chairman Guarco indicated that conversation meetings about the budget may be scheduled in February and March as was done last year. Mr. Wilke concurred this idea is a good approach to getting the word and understanding of the budget out to the public at large.
CONFIRM DATE OF NEXT MEETING
The next regular meeting on December 28, 2009 will be cancelled. The Board of Finance will be holding a special meeting on January 12, 2010 and the tentative agenda includes public input about the budget and budget guidelines. A Three Board meeting is scheduled on January 19, 2010 that will discuss the budget by the three boards (Board of Education, Board of Finance, and Board of Selectmen).
ADJOURNEMENT
ON A MOTION by Al Wilke, seconded by Gordon Bischoff, the Board voted unanimously (6-0-0) to adjourn the meeting at 9:00 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
| 
