TOWN OF GRANBY
BOARD OF FINANCE SPECIAL MEETING MINUTES
FEBRUARY 9, 2010
PRESENT: Michael Guarco, Chairman; Gordon Bischoff, Robert Clark, Frederick Moffa, OD, and Al Wilke
Also present: William F. Smith, Jr., Town Manager and Harry Traver, BOE Business Manager
Chairman Guarco stated there was a quorum and called the meeting to order at 7:30 p.m.
MINUTES
The Board reviewed the minutes for the meeting of January 12, 2010 before taking action.
On a MOTION by Gordon Bischoff, seconded by Al Wilke, to approve minutes of January 12, 2010, the Board voted unanimously (5-0-0) to approve the minutes.
STATEMENTS OF ACCOUNTS
Town Manager Smith reviewed the January Budget Operations Report. Tax collections are on target. He commented the chart may indicate collections are slightly below previous years. This is due to how the calendar falls for reporting purposes. If you reported a week later, collections would show to be on target. Other revenues are generally coming in and should meet our expectations by year-end. A discussion ensued about the reporting of the ECS account. Town Manager Smith and Mr. Traver concurred that there is no apparent problem with the accounting. Town Manager Smith reported short-term investments should meet expectations. Mr. Clark inquired what was the rate of return on the short-term investment account. Town Manager Smith answered investment returns vary at
assumption rates, approximately at 2%, which makes this account volatile. He indicated the snow removal overtime account should meet the budget. However, it will depend on how many winter storms we have for this fiscal year. Expenditures are on target.
The January Statement of Accounts from the Board of Education was reviewed by Harry Traver, BOE Business Manager. The favorable amount forecast changed from $89,294 to $122,000 due to the custodial and maintenance salaries being adjusted favorably by $30,000. He reported the state indicates only 77% of the excess cost reimbursement account is expected to be reimbursed. When asked if the electricity account will show a savings at year-end, Mr. Traver commented that several efficiencies have been taken advantage of and usage has lessened some but with electricity rates rising, it will be close.
CONSIDERATION OF FY 2010-11 FINAL BUDGET GUIDELINES
Chairman Guarco opened this topic for discussion by his board and others. He highlighted some items that affect managing the budget guidelines for the proposed FY 2010-11 budget. He noted the health benefit costs are running 6-8%, the governor’s budget is basically flat, there is a decrease in funding for the Education Cost Sharing account, and the Grand List growth is approximately $175,000.
Chairman Guarco reviewed the budget worksheet noting the town and school operations budget guideline would be at zero and using the increase revenue from the Grand List growth of approximately $175,000, the mill rate increase would be 1%.
The Board discussed and concurred the need to integrate the debt service into the mill rate, the need to raise the rate to reduce the use of reserves while keeping the town and school operations budget flat, matching up the needs and wants with the ability to pay, and finally the administration proposes budgets, boards recommend budgets, and the public decides on the budget by vote.
Town Manager Smith commented that leaving the operations budget guideline at zero creates a gap. A zero operations budget will not maintain service levels for either the school or the town. The attraction and community living standards in Granby will not remain as we know it and will suffer. Long-range planning must play a role during these difficult economic times.
On a MOTION by Al Wilke, seconded by Gordon Bischoff, the Board voted unanimously (5-0-0) to confirm the guideline from last month’s meeting. The town and school boards prepare a zero budget for FY 2010-11 and a mill rate increase of 1% for FY budget 2010-11.
CONFIRM DATE OF NEXT MEETING
The next meeting is scheduled for March 29, 2010 at 7:00 p.m. in the Senior Center Community Room. The tentative agenda is presentation of school and town budgets.
Chairman Guarco has scheduled public sessions in the Police Department Community Room for Q&A on the 2010-11 budget. These public sessions are:
February 16, 2010 at 10 a.m. – 12 noon and 7 – 8:30 p.m.;
February 24, 2010 at 3 – 4:30 p.m. and 7 – 8:30 p.m.
Other important budget dates are:
PublicHearing – April 12, 2010
Town Meeting – April 26, 2010.
ADJOURNMENT
On a MOTION by Mr. Wilke, seconded by Dr. Moffa, the Board voted unanimously (5-0-0) to adjourn the meeting at 8:20 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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