TOWN OF GRANBY
BOARD OF FINANCE
REGULAR MEETING MINUTES
November 22, 2010
PRESENT: Michael Guarco, Chairman; Francis Brady, Robert Clark, Frederick Moffa, O.D.; and Al Wilke
OTHER ATTENDEES: William F. Smith, Jr., Town Manager; Alan Addley, Superintendent of Schools; 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. and a quorum confirmed.
MINUTES
The Board reviewed the minutes of September 27, 2010. Chairman Guarco asked for comments and a motion.
On a MOTION by Francis Brady, seconded by Al Wilke, the Board voted (5-0-0) to approve the minutes of September 27, 2010.
STATEMENT OF ACCOUNTS
Town Manager Smith reviewed the October 2010 Statement of Accounts. Tax collections are coming in as anticipated. Short-term investment increases have not occurred and will fall short because of the lack of interest earnings. Other revenue accounts are satisfactory. The Library has received a $29,052 grant from the Hartford Foundation for Public Giving for technology improvements. The Cossitt Library received a grant from the Hartford Foundation for Public Giving in the amount of $125,000 for the repairs that have been completed. The town is hoping to make ends meet even with the shortfall in investment revenues.
The town is holding expenditures steady. However, the Department of Public Works is coming into their demanding season with the winter weather approaching. When asked by Chairman Guarco, Town Manager Smith confirmed the auto supplement billing will be mailed out in December.
Harry Traver, BOE Business Manager, reported on the Board of Education Financial Statement of Accounts for October 2010. He indicated the special education accounts (tutors and transportation) have flipped in performance from last year. This year the school is experiencing more students, more transportation to different schools, and more buses being used to accomplish this need. The revenues from tuition from other towns account are favorable. He reported that the State Department of Education (SDE) Excess Cost Reimbursement account has not been updated from September as of yet.
Mr. Brady inquired about the teachers’ contract increase for 2012 and Mr. Traver commented the step increases are frozen for ½ year and the contract increase is 2.85%. Mr. Traver stated all school contracts expire in 2012. He also indicated the Education Cost Sharing funds will not impact the budget like last year (most likely worse) and it will be handled as a credit at year-end.
Superindentent Addley indicated that approximately $310,000 is needed to hold positions and keep the good school ethics and teaching at its current level. Mr. Traver commented that they are looking at a one-time Early Retiree Reinsurance Program (ERRP). This program is an incentive for early retirees and can assist with the health benefit fund. The dollar range can be anywhere from $15,000 - $90,000.
CONSIDERATION OF APPROPRIATION REQUEST FOR THE GRANBY PUBLIC LIBRARY TO BE OPEN ON SUNDAYS DURING JANUARY, FEBRUARY, AND MARCH
Town Manager Smith indicated the Friends of Granby Public Library have offered to financially support keeping Granby Public Library open on Sundays during the winter. They have offered to donate an amount of $3,025 for this, indicating it would be a “one-time” funding project.
On a MOTION by Al Wilke, seconded by Francis Brady, the Board voted unanimously (5-0-0) to approve the appropriation in the amount of $3,025 from General Fund Balance to the General Fund, Library Services account.
An editorial observation was made by Mr. Brady that towns seem to eliminate library weekend operation hours during difficult times when people may want to utilize a library more because of the economic times – and why is that so. Town Manager Smith concurred and commented that views and opinions are sought before decisions are made in reducing operation hours, some of which are performance, morale, shift schedules, and availability of staff.
DISCUSSION ON FY 2012 BUDGET GUIDELINE
Chairman Guarco distributed a worksheet from last year regarding the budget for information to the Board. It was commented that the state’s budget would not be released until February 2011. The town budget guideline would not be able to be finalized until, as many assumptions as possible become known.
The Board made several general budget comments. Some of which were:
- The Governor-Elect indicated municipalities will be untouched for budget operations. Have to wait and see.
- The public may be confused about the budget in that less spending (reduction in budget) means less services offered.
- Granby budgets, as history goes, are conservative all the time.
- The Board should begin communications about the budget with the public.
- There appears to be more uncertainty with budgets. Need to control what we can control.
- The state budget cannot continue to give same levels to towns. Most likely aid will be cut to towns.
- Looking at a modest increase in the mill rate for Granby’s budget.
- Since discussion being held about using general accepted accounting principles (GAAP) accounting for the state budget, it is anticipated that this type of accounting will cut expenditures and grants.
- Show cuts made in the budget when ready.
- A negative budget will hurt the town operations and the community’s attractiveness.
- Serious reductions will jeopardize staff positions and programs.
- Tax rate increase helps make up for shortages in budget.
- Budget may have decreases, but may still need an increase in mill rate.
The Superintendent of Schools commented:
- The anticipated reduction in Education Cost Sharing (ECS) fund from the state must be made up locally.
- Approximately $710,000 is a potential need for school budget. This would assist in making up the shortage in the ECS, the elimination of potentially 16 staff positions, and other school related matters. This kind of cut would be detrimental to the school’s education standards.
First Selectman Adams commented:
- Even staying at a 0% budget would mean working with less, when you take into consideration inflation.
- On the town side, some potential needs are plus-one budget items (obligated contracts), health, revaluation of real estate, and capital projects. These items will be reviewed at a future Board of Selectmen workshop on December 6th.
Town Manager Smith commented:
- The Boards needs to gauge what the public wants and what kind of government we have before planning for the future or making cuts to a budget.
- If the budget was left alone, the needs of the town that are not doing so well will still increase along with the cost of these needs, allowing the town to deteriorate from its current standing and loose the community’s attractiveness.
- Our local response for a solution to the current economy is very important for the budget and town.
CONFIRM DATE OF NEXT MEETING
The next regular meeting of the Board of Finance on Monday, December 27, 2010 will be cancelled. Alternative dates are January 4, 2011 or January 11, 2011 and will be finalized at a later date.
ADJOURNMENT
On a MOTION by Francis Brady, seconded by Al Wilke, the Board voted unanimously (5-0-0) to adjourn the meeting at 8:45 p.m.
Respectfully submitted,
Patricia I. Chieski
Recording Secretary
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