TOWN OF GRANBY
BOARD OF FINANCE
SPECIAL MEETING
NOVEMBER 24, 2008
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Francis Brady, Frederick Moffa, OD; and Al Wilke.
OTHER ATTENDEES: John Adams, First Selectman; William F. Smith, Jr., Town Manager; Barbarajean C. Scibelli, Administration Finance Officer; C. John Heminway, BOE Chairman; Matthew Wutka, BOE member; Alan Addley, Superintendent of Schools, and Harry Traver, BOE Business Manager
Annie Hornish, State Representative Elect
Chairman Michael Guarco confirmed a quorum and called the meeting to order at 7:30 p.m.
MINUTES
The Board reviewed the special meeting minutes of October 27, 2008. ON A MOTION by Gordon Bischoff, seconded by Frederick Moffa, the Board voted unanimously (5-0-0) to approve the minutes as presented.
Chairman Guarco recognized State Representative Elect Annie Hornish and welcomed her to the Board of Finance meeting.
STATEMENT OF ACCOUNTS
Barbarajean Scibelli, Administration Finance Officer, reviewed the Budget Operations Report dated October 2008. It was noted that tax collections were a little behind last year but prior years taxes are significantly higher. This is because there are more back taxes at this time and any payments received are applied to prior years before current year. The Education Cost Sharing account has received its payment, but was not reflected in this month’s report because notice had not been received yet. Town Clerk fees were also down, most likely due to less refinancing. Building permits and Bulky Waste/Recycling fees were up slightly. The Miscellaneous Account received donations in the amount of $9,500 for a senior van replacement, $30,000 for the Rails to Trails project, and a legal settlement on the
Kelly Lane School renovation project. The expenditures are on track.
Harry Traver indicated that the October Statement of Accounts has no significant matters that need reporting. He stated the school has taken steps to help keep the electric and fuel costs in line. It is anticipated there may be a $40,000 savings at the end of the year.
CONSIDERATION OF APPROPRIATION REQUEST FOR THE HARTFORD FOUNDATION FOR PUBLIC GIVING GRANT (SENIOR AND YOUTH INITIATVE GRANT PROGRAM)
Town Manager Smith explained this was the third year and conclusion of a three-year Hartford Foundation for Public Giving grant. It was also mentioned that the rest of the funding is already in the budget through other grants and funds. The fourth year would be when the budget would completely pick up this initiative if possible, otherwise it would be discontinued. The intent of this grant was to have a fall off and locally be picked up. Town Manager Smith commented the Hartford Foundation is a good support agency and partner to the town. The town has been involved with several grants from them and will continue to do so whenever opportunities are available. First Selectman Adams also commented the town continues to meet with the Foundation to secure these types of funding. In answer to Mr. Wilke’s question, Town Manager Smith indicated that the Foundation does not usually continue specific grants but the town will check into it.
ON A MOTION by Al Wilke, seconded by Gordon Bischoff, the Board voted unanimously (5-0-0) to approve the appropriation in the amount of $31,250 from the General Fund to the Senior Center Initiative Fund.
DISCUSSION OF FY 2009-10 BUDGET
The Board of Finance was provided with the Board of Selectmen’s approved copies of the Plus One Budget (2009-10) as prepared by the Town Manager. The Board of Education indicated their Plus One Budget would be ready for distribution next month.
Chairman Guarco started a preliminary discussion on the FY 2009-10 budget, given the difficult economic situation, is warranted. The Board requested information be shared as soon as possible to assist them in formulating the budget model. A budget model was distributed showing 2% budgets for two years, 2% mill rates, flat Intergovernmental Revenues, and low grand list growth. Chairman Guarco indicated several models have already been created to get to this point. Chairman Guarco reported the state is showing deficiencies in their current budget, which Special Session is working on, and the next two years shows a deficiency also (FY ‘10 -$2.6M, FY ‘11 -$3.3M).
First Selectman Adams opened his discussion with a positive note. The town is realizing a savings and holding steady accounts involving lights and heating fuel. The Bulky Waste/Recycling rate will be reduced January 1, 2009, showing a savings of approximately $10,000. The Capitol Region Council of Governments (CRCOG) is looking into waste facilities needs since the Connecticut Resources Recovery Authority (CRRA) mid-Connecticut contracts for 70 towns will be up in 2012. The sharing in finance software, snow plowing, and maintenance result in significant savings, sometimes this shows in the budget, sometimes not. The health insurance is an unknown factor amount for the budget at this time. First Selectman Adams indicated that personnel reductions are not necessarily one for one dollar savings. In
order to reduce to a certain dollar amount, you may need to terminate two people which is more than the dollar amount you were looking for.
Chairman Heminway commented the Board of Education is anticipating a $40,000 savings as a result of implementing energy cost-cutting measures. He asked if someone could look into managing an incentive program to employees that would benefit their organization when such savings can be realized in budget operations. The school has many legislative issues, one in particular is the Sheff vs. O’Neill desegregation case to work through, involving programs as magnet schools and open choice. Chairman Heminway reported that school enrollment is on target and is expected to be flat next year.
The Board then commented about budget operations, budget guidelines, and the economy down turn condition. They concurred on all issues, some are:
- The town and school provide information as soon as possible on what does it mean to have a 0% - 2% increase in operations.
- A possible incentive program may be a reward in revenues, a decrease in cost, and a hold harmless for continuing sharing efforts between the town and school.
- With the State Representative Elect attending this meeting, the Board expressed that the state work with towns on helping to lessen the burdensome of certain mandates, like binding arbitration, prevailing wage threshold, and newly created mandates.
- The budget will be a tight budget. Programs may have to be eliminated and layoffs may take place. Reduce travel on a need basis only and no hiring are two items that should be considered in the budget.
First Selectman Adams stated CRCOG and the Connecticut Conference of Municipalities (CCM) are looking into mandates that will have economic implications for towns. These organizations support giving relief on economic mandates to towns.
The Board of Finance’s ultimate goal is to have a balance budget that meets the needs of the town.
CONFIRM DATE OF NEXT MEETING
The next regular meeting will be on December 22, 2008 at 7:30 p.m. at the Police Department Community Room.
First Selectman Adams mentioned that a Three Board Meeting will be called for sometime in January for further discussion about the FY 2010 budget.
ADJOURNEMENT
ON A MOTION by Al Wilke, seconded by Frederick Moffa, the Board voted unanimously (5-0-0) to adjourn the meeting at 8:30 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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