TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING MINUTES
OCTOBER 27, 2008
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, B. Scott Kuhnly, Frederick Moffa, O.D. , and Al Wilke. Mr. Wilke arrived late.
OTHER ATTENDEES: William F. Smith, Jr., Town Manager; Barbarajean Scibelli, Administration Finance Officer; Alan Addley, Superintendent of Schools; and Harry Traver, BOE Business Manager
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 September 11, 2008.
On a MOTION by Gordon Bischoff, seconded by Frederick Moffa, O.D., the Board voted (3-0-2) to approve the minutes of September 11, 2008 as presented. Messrs. Brady and Kuhnly abstained.
STATEMENT OF ACCOUNTS
Barbarajean Scibelli reported on the September Town Budget Operations Report. The revenues and expenditures are on track. She indicated that the current year taxes collected is 54%, slightly lower than last year’s report. However, prior years’ taxes show an approximate increase of 45% higher.
Questions by Messrs. Bischoff, Guarco, and Kuhnly were asked about tracking foreclosures, revenues in account #312, and expenditures in account #1014. Town Manager Smith stated a foreclosure Lis Pendens report was produced and will be watched. He indicated a comparison between this year and last year was made too. Last year showed significant foreclosure potential (50%), but only approximately 20 cases went into foreclosure. This year approximately 20 cases are reported and only a couple transpired. Mrs. Scibelli reported revenues in account #312 were from the final audit reimbursement from the Department of Education for the high school renovation project. She indicated there was a moderate increase expense in workers compensation.
Harry Traver, BOE Business Manager, reported on the Board of Education Financial Statement Account for July 1, 2007 – June 30, 2008 (after year end transfers). He indicated the Board of Education would be returning approximately $23,000. Mr. Traver mentioned there were a number of retirees this past year with severance and gasoline and fuel accounts showed an unfavorable balance, all of which contributed to the ending balance for fiscal year 2008.
Mr. Traver reported on the Board of Education Financial Statement September 30, 2008 report. The report indicates heavy spending this month. However, this amount will be offset by the favorable balance in the fuel account. Mr. Traver stated the school has taken steps to help keep the electric and fuel costs in line, by contracting for fuel at a set rate and turning lights off at the schools earlier in the evenings. Building temperatures have also been lowered to conserve fuel.
DISCUSSION ON FUNDING TOWN AND SCHOOL FINANCE SOFTWARE PURCHASE
Town Manager Smith led the discussion on funding town and school finance software purchase by saying that the BudgetSense System is a good system. It is a single payroll and accounting system and it will improve efficiency in transactions being processed between the town and school and town-wide reporting. The first year maintenance charge is included in the purchase price; however, it will have to be budgeted next year. Town Manager Smith indicated there was no significant difference between paying cash and paying off in five years. The original funding sources at the beginning of the finance software review were from the Board of Education’s budget of $25,000 for this year and the next two years and from the Selectmen’s capital budget for next year in the amount of $100,000. This funding source
would have purchased a two software system. The current and recommended proposal is approximately $145,975, which is a cost savings of approximately $34,000 over the original proposal. The Board concurred that steps should continue to move forward to purchase this finance software and it is good to see both entities working together with such an undertaking.
The Board then discussed options either to borrow the money or pay cash directly. After discussion, the Board deemed payment schedule would be all right, but they supported the cash plan. One of the reasons being it may give more flexibility to the school and town with upcoming budget planning.
It was also noted the school and town has joined into two other sharing proposals, which were a purchase of a used town truck by the school and a snow plow agreement for the high school and middle school property.
BUDGET GUIDELINES DISCUSSION
Chairman Guarco commented given the economic down turn condition, it may be appropriate to begin the budget guideline process now. He will contact the Board of Selectmen to request a Three Board Meeting soon. Some of the Board’s comments about the budget and mill rate were:
- Operating budgets increase need to stay low (below 3% to flat).
- Mill rate increase needs to be low (1%-2%).
- These are difficult times and it is not the time to spend money.
- Concerned with the state’s budget position and their role with municipal budgets (Granby). The state may cut aid to towns.
- The grand list growth will not assist the budget this year.
- In FY10-11 debt service starts to drop off.
- For funding future projects, referendum vote and pay as you go may be the philosophy.
- Granby’s budget has been considered conservative.
- Keeping the budget increases low, may cause changes in the level of service residents receive and lay-offs.
Chairman Guarco distributed an updated finance model (LT 2008-5) to his members for their review.
CONFIRM DATE OF NEXT MEETING
Mr. Brady thanked the Board for changing the meeting date to assist him with his business schedule. The Board of Finance will be meeting the fourth Monday each month. The next meeting of the Board of Finance is Monday, November 24, 2008.
ADJOURNMENT
On a MOTION by Scott Kuhnly, seconded by Al Wilke, the Board voted unanimously (6-0-0) to adjourn the meeting at 8:30 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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